671.110 1. In lieu of any
surety bond, or any portion of the principal sum thereof as required by this
chapter, a licensee may deposit with the state treasurer or with any bank or
trust company authorized to do business in this state as the licensee may
select, with the approval of the [administrator:]commissioner:

(a) Interest-bearing stocks;

(b) Bills, bonds, notes, debentures or other
obligations of the United States or any agency or instrumentality thereof, or
guaranteed by the United States; or

(c) Any obligation of this state or any city,
county, town, township, school district or other instrumentality of this state
or guaranteed by this state,

in an aggregate amount of, based upon principal amount or
market value, whichever is lower, of not less than the amount of the required
surety bond or portion thereof.

2. The securities must be held to secure
the same obligation as would the surety bond, but the depositor may receive any
interest or dividends and, with the approval of the [administrator,]commissioner, substitute other suitable
securities for those deposited.

Sec. 222. NRS 671.120 is
hereby amended to read as follows:

671.120 1. Except as
provided in subsection 4, once each year the [administrator]commissioner shall examine the financial accounts
of each licensee and any other documents relevant to the conduct of the
licensees business, and the [administrator]commissioner may conduct [such]
examinations at additional times.

2. For the purpose of the examinations,
the [administrator]commissioner may enter upon any of the business
premises of a licensee or his agents and obtain access to the relevant
documents. Any obstruction or denial of [such an]that entry or access is a violation of this
chapter.

3. For each examination the [administrator]commissioner
shall charge and collect from the licensee a reasonable fee for each man-hour
expended in conducting the examination and in preparing and typing the report.

4. The [administrator]commissioner may accept a report of an audit of
the licensee which covers the most recent fiscal year in lieu of conducting an
examination.

Sec. 223. NRS 671.150 is
hereby amended to read as follows:

671.150 1. All money or
credits received by an agent of a licensee from the sale and issuance of checks
or for the purpose of transmission must be remitted to the licensee or
deposited with a bank authorized to do business in this state for credit to an
account of the licensee not later than the third business day following its
receipt.

2. [Funds]Money received from the sale or issuance of
checks or for the purpose of transmission must not be commingled with the other
assets of the licensee or his agents.

3. If a license is suspended or
terminated, the licensee shall immediately deposit in an account in the name of
the [administrator,]commissioner, an amount which is
sufficient to make the total [funds] money in the account equal to all
outstanding checks in the State of Nevada sold or issued and money or credits
received but not transmitted.

amount which is sufficient to make the total [funds]money
in the account equal to all outstanding checks in the State of Nevada sold or
issued and money or credits received but not transmitted.

4. Each licensee shall at all times
maintain liquid assets, government or municipal securities or other marketable
securities having a value, computed in accordance with generally accepted
accounting principles, equal to or more than the aggregate liability of the
licensee with respect to checks sold and issued and money or credits received
for transmission.

Sec. 224. NRS 671.160 is
hereby amended to read as follows:

671.160 1. Within 5 days
after a discontinuance of a licensees business, he shall inform the [administrator]commissioner
of the discontinuance and shall surrender his license for cancellation.

2. If, as a result of any investigation,
hearing, report or examination, the [administrator]commissioner finds that a licensee is insolvent
or is conducting his business in such a manner as to render his further
operations hazardous to the public, the [administrator]commissioner may, through an order served by
registered or certified mail upon the licensee and any person possessing [funds]money
of the licensee or his customers, require the immediate discontinuance of the
disbursement of the [funds]money and the cessation of the licensees business. The
order remains in effect until:

(a) It is set aside, in whole or in part, by the
[administrator;]commissioner;

(b) The licensee has been adjudged a bankrupt;
or

(c) A receiver for the licensee has been
appointed by a court of competent jurisdiction.

3. If a court does not have jurisdiction
over the licensee, the [administrator]commissioner may take possession of the
licensees business and property until the licensee complies with the
requirements of the [administrator]commissioner for resumption of business or the
licensees affairs are finally liquidated.

4. Whenever the [administrator]commissioner takes possession of a licensees
business and property, the [administrator]commissioner may petition the court for
appointment of a receiver to liquidate the affairs of the licensee.

Sec. 225. NRS 671.170 is hereby
amended to read as follows:

671.170 1. The [administrator]commissioner
may conduct any necessary investigations and hearings to determine whether any
licensee or other person has violated any of the provisions of this chapter or
whether any licensee has conducted himself in a manner which requires the
suspension, revocation or denial of renewal of his license.

2. In conducting any investigation or
hearing pursuant to this chapter, the [administrator,]commissioner, or any person designated by him,
may require the attendance and testimony of any person and compel the
production of all relevant books, records, accounts and other documents. The
cost of any examination or investigation, not to exceed $10 an hour, must be
borne by the licensee.

3. The [administrator]commissioner may require any licensee to submit
such reports concerning his business as the [administrator]commissioner deems necessary for the enforcement
of this chapter.

4. All reports of investigations and
examinations and other reports rendered pursuant to this section, and all
correspondence and memoranda relating to or arising therefrom, including any
authenticated copies thereof in the possession of any licensee or the [administrator,]commissioner,
are confidential communications, are not subject to any subpena, and must not
be made public unless the [administrator]commissioner determines that justice and the
public advantage will be served by their publication. This subsection does not
preclude any party to an administrative or judicial proceeding from introducing
into evidence any information or document otherwise available or admissible.

Sec. 226. NRS 671.180 is
hereby amended to read as follows:

671.180 1. If the [administrator]commissioner
has reason to believe that grounds exist for the suspension, revocation or
denial of renewal of a license, he shall give 10 days written notice to the
licensee, stating the grounds therefor, and shall set a date for a hearing, if
a hearing is requested by the licensee. If the protection of the public so
requires, the [administrator]commissioner may suspend the license at any time before
the hearing.

2. At the conclusion of the hearing, the [administrator]commissioner
shall enter a written order either dismissing the charges or suspending,
revoking or denying the renewal of the license. The order must include a
statement of the grounds for the action taken by the [administrator]commissioner and becomes effective 10 days after
receipt of a copy of the order by the licensee at his principal place of
business. The [administrator]commissioner may immediately suspend, revoke or deny
the renewal of the license in a case where the licensee has failed to maintain
in effect the required surety bond or insurance policy.

3. The grounds for suspension, revocation
or denial of renewal of a license are:

(a) Failure to pay the annual license fee;

(b) Failure to maintain in effect the required
bond or securities;

(c) Fraud, misrepresentation or omission of any
material fact in any application, statement or report;

(d) Failure to pay any judgment arising from the
licensees business within 30 days after the judgment becomes final or within
30 days after the expiration of a stay of execution on the judgment; or

(e) Violation of any provision of this chapter
or any regulation adopted or order issued by the [administrator]commissioner pursuant to this chapter.

4. Any action taken by the [administrator]commissioner
pursuant to this section is subject to judicial review in the first judicial
district court.

Sec. 227. NRS 671.190 is
hereby amended to read as follows:

671.190 1. Any person who:

(a) Violates any provision of this chapter, or
any regulation adopted or order issued by the [administrator]commissioner pursuant to this chapter;

(b) Knowingly makes any false or misleading
statement of a material fact in any application, statement or report filed
pursuant to this chapter;

(c) Knowingly omits to state any material fact
necessary to provide the [administrator]commissioner with information lawfully required
by him; or

(d) Refuses to permit or obstructs any lawful
investigation, examination, entry or access by the [administrator,]commissioner,

is guilty of a misdemeanor.

2. Each day during which a violation
continues constitutes a separate offense.

3. The imposition of any fine or term of
imprisonment pursuant to subsection 1:

(a) Is in addition to any suspension, revocation
or denial of renewal of a license which may result from the violation.

(b) Is not a bar to enforcement of this chapter
by an injunction or other appropriate civil remedy.

Sec. 228. Chapter 673 of NRS
is hereby amended by adding thereto a new section to read as follows:

Commissioner means the
commissioner of financial institutions.

Sec. 229. NRS 673.001 is
hereby amended to read as follows:

673.001 As used in this chapter, unless
the context otherwise requires, the words and terms defined in NRS [673.0015]673.002
to 673.034, inclusive, and section 228 of this act,
have the meanings ascribed to them in those sections.

Sec. 230. NRS 673.0321 is
hereby amended to read as follows:

673.0321 Service office means any
office or other place of business in this state operated by one or more savings
and loan associations other than the principal office or a branch of an
association, where activities are confined to processing and storing data and
records, accounting, printing, storing of supplies, and such other activities
as the [administrator]commissioner approves which involve no personal contact
with the public. At a service office, payment on account of savings or loan may
be processed, but the association shall have all payments which are initially
received at a service office, rather than at the principal office or branch of
the association, made by mail only and directed to a post office box and not to
the address or location of the service office. The [administrator]commissioner may require that an associations
name not be displayed at or near a service office.

Sec. 231. NRS 673.035 is
hereby amended to read as follows:

673.035 The [administrator]commissioner shall administer the provisions of
this chapter, subject to administrative supervision by the director. He shall
make the decisions, determinations and enter the consents and orders necessary
or reasonably appropriate to accomplish the purposes of this chapter.

(b) The original application of every
association in a permanent file.

(c) Other administrative documents in the manner
provided by law or by appropriate regulations.

2. Provide a complete stenographic record
of every hearing and proceeding conducted by his office and maintain, for no
less than 5 years, a transcript of [such]the hearing or proceeding, together with any
regulation, order, decision, determination or consent entered in connection
with [such]the
hearing or proceeding.

Sec. 233. NRS 673.040 is
hereby amended to read as follows:

673.040 The [administrator]commissioner shall supervise and make all policy
with regard to all foreign and domestic associations, companies and
corporations governed by this chapter and doing business in this state.

Sec. 234. NRS 673.042 is
hereby amended to read as follows:

673.042 1. The [administrator]commissioner
shall, before September 1 of each even-numbered year for the biennium ending
June 30 of [such]that year, report to the governor. The report must:

(a) Show the condition of all associations
reporting to or examined by the [administrator.]commissioner.

(b) Be accompanied by a detailed statement of
all money received by the [administrator]commissioner since his last report and the
disposition of that money.

2. Copies of the reports must be
furnished to each association or company licensed under the provisions of this
chapter.

Sec. 235. NRS 673.043 is
hereby amended to read as follows:

673.043 1. The [administrator may establish]commissioner may adopt such regulations as may be
reasonable or necessary to carry out the purposes of this chapter.

2. [Such]The regulations as originally drafted, and as
amended from time to time, must be printed and distributed by the [administrator]commissioner
to all associations, and [becomes]become effective not earlier than 30 days from the date
of issuance, but before [such]the regulations become effective and within [such]that
30-day period any association may appeal to the director as to the reasonableness
and necessity of any of or all of [such]the regulations.

Sec. 236. NRS 673.0435 is
hereby amended to read as follows:

673.0435 The [administrator]commissioner may cause appropriate legal action
to be taken in the district court of any county to secure an injunction or
order restraining a violation of any provision of this chapter.

Sec. 237. NRS 673.044 is
hereby amended to read as follows:

673.044 All notices must be in writing.
All notices issued or required to be issued by the [administrator]commissioner must be sent by registered or
certified mail and become effective upon their deposit in the mails.

Sec. 238. NRS 673.045 is
hereby amended to read as follows:

673.045 The [administrator]commissioner may, for reasonable cause and upon
15 days notice, amend or alter any license issued by him, but the association may appeal the order of the [administrator]
commissioner in the manner provided in this chapter.

association may appeal the order of the [administrator]commissioner
in the manner provided in this chapter.

Sec. 239. NRS 673.050 is
hereby amended to read as follows:

673.050 A person affected by any order,
ruling, proceeding, act or action of the [administrator]commissioner or any person acting on his behalf
and at his instance, or the director or any person acting on his behalf and at
his instance, may test the validity of the action in any court of competent
jurisdiction through injunction, appeal, error or other proper process or
proceeding, mandatory or otherwise.

Sec. 240. NRS 673.080 is
hereby amended to read as follows:

673.080 1. The secretary of
state shall not issue any certificate to an association or company authorizing
it to do business until the articles of association, agreement or incorporation
are approved by the [administrator.]commissioner.

2. No amendment to the articles of the
organization may be filed by the secretary of state without the written
approval of the articles by the [administrator.]commissioner.

3. No association may sell, offer for
sale, negotiate for the sale of, take subscriptions for, or issue any of its
common or preferred stock until it has first applied for and secured from the [administrator]commissioner
approval of an application for permission to organize as provided for in this
section.

4. Persons who desire to organize an
association under this chapter shall first execute in triplicate an
application, in the form prescribed by the [administrator,]commissioner, for permission to organize an
association before taking any other action in connection with the organization.
Upon execution of an application for permission to organize by seven
responsible citizens, referred to in this section as applicants, the original
and two copies of the application must be submitted to the [administrator.]commissioner.
The applicants shall submit with their application the names and addresses of
the applicants, the location of the proposed office, an itemized account of the
financial condition of the proposed association and of the applicants, the
amount and character of the proposed stock, statements, exhibits, maps and such
additional information as the [administrator]commissioner may require, together with an
affidavit that the representations made thereby are consistent with the facts
to the best of the applicants information and belief. This data must be
sufficiently detailed and comprehensive to enable the [administrator]commissioner to pass upon the application as to:

(a) The character and responsibility of the
applicants;

(b) The need for the association in the community
to be served;

(c) The reasonable probability of its usefulness
and success; and

(d) Whether or not such an association can be
established without undue injury to any properly conducted existing savings and
loan institutions.

5. If the [administrator]commissioner approves the application he shall,
within 30 days, notify all associations within 100 miles of the community where
the applicant intends to establish an association. Any association so notified may, within 20 days, protest in writing the granting
of the application.

notified may, within 20 days, protest in writing the
granting of the application. Within 30 days after receipt by the [administrator]commissioner
of the written protest, the [administrator]commissioner shall fix a date for a hearing upon
the protest, and the hearing must be held not earlier than 30 days nor more
than 60 days from the date of receipt of written notice by registered or
certified mail by the parties. The [administrator]commissioner shall approve or deny the
application within 90 days from the date of the conclusion of the hearing and
give all parties written notice of his decision on or before that date.

6. If the [administrator]commissioner approves the application, he shall
establish as conditions to be met before the issuance of a charter requirements
as to:

(a) The minimum number of shares of common or
preferred stock to be subscribed to the associations permanent capital;

(b) The minimum amount of paid-in surplus;

(c) The minimum amount of investment
certificates to be paid into the associations savings accounts upon issuance
of a charter to it; and

(d) Such other requirements as he deems
necessary or desirable.

At least 75 percent of the capital must be subscribed by
bona fide residents of this state or a depository institution or holding
company qualified pursuant to NRS 666.225 to 666.385, inclusive. Approval of an
application for permission to organize an association does not in any manner
obligate the [administrator]commissioner to issue a charter, except that when all
requirements of this chapter and of the [administrator]commissioner have been fulfilled, he shall issue
a charter.

7. The charter expires 180 days after
issuance, unless, within that time, the association has obtained insurance of
accounts from the Federal Savings and Loan Insurance Corporation. The [administrator]commissioner
may, for good cause, extend the time of the conditional expiration of the
charter for an additional period or periods not exceeding 360 days in the
aggregate.

8. An association shall not sell or issue
any of its permanent stock until it has first applied for and secured from the [administrator]commissioner
a license authorizing it to operate as a savings and loan association under the
laws of this state and until it has applied for and secured insurance of
accounts under the regulations of the Federal Savings and Loan Insurance
Corporation. This insurance of accounts must be maintained at all times.

9. The [administrator]commissioner may extend the time for any hearing
provided for in this section, to the time agreed upon by the parties.

10. The filing fees are:

(a) For filing an original application, $2,000
for the principal office. The applicant shall also pay such additional expenses
incurred in the process of investigation as the [administrator]commissioner deems necessary. All money received
by the [administrator]commissioner pursuant to this paragraph must be placed
in the investigative fund created by NRS 232.285.

(b) If the license is approved for issuance,
$1,000 for the principal office before issuance.

11. The [administrator]commissioner may impose conditions requiring the
impoundment of proceeds from the sale of any stock, limiting the expense in
connection with the sale of stock, and such other conditions as are reasonable
and necessary or advisable to insure the disposition of the proceeds from the
sale of the stock in the manner and for the purposes provided in the permission
to organize.

12. Every permission to organize issued
by the [administrator]commissioner must recite in bold type that its issuance
is permissive only and does not constitute a recommendation or endorsement of
the organization or of the stock permitted to be issued.

13. Any corporation making application under
this section or authorized to organize or authorized to establish a savings and
loan association shall provide for a minimum par value of its permanent capital
stock of at least $1 in its articles of incorporation. Par value of permanent
capital stock may not be reduced below $1 without written permission of the [administrator.]commissioner.

14. The removal of the home office or of
any branch office of an association to any other location from its then
existing location requires prior approval of the [administrator.]commissioner. An application seeking approval
must be delivered to the [administrator,]commissioner, together with a fee to cover
expenses attendant upon the investigation required for the approval, which must
be in an amount, not less than $100, to be determined by the [administrator.]commissioner.
All money received by the [administrator]commissioner pursuant to this subsection must be
placed in the investigative fund created by NRS 232.285.

15. An association shall not pay any
commissions or other compensation for the subscription to or sale of the
original issue of its stock.

Sec. 241. NRS 673.110 is
hereby amended to read as follows:

673.110 Any domestic association, which
has the words savings and loan in its name, may, by filing with the [administrator]commissioner
written notice thereof authorized by its board of directors and by complying
otherwise with its articles of incorporation, remove the words and loan from
its name.

Sec. 242. NRS 673.112 is
hereby amended to read as follows:

673.112 1. A branch office
is a legally established place of business of an association, other than the
home office, which is authorized by the board of directors and approved by the [administrator]commissioner
and at which any of the associations business may be conducted.

2. All branch offices are subject to
direction from the home office.

3. No association may establish or
maintain a branch office without prior written approval of the [administrator.]commissioner.
Each application for approval of the establishment and maintenance of a branch
office must:

(a) State the proposed location thereof, the
need therefor, the functions to be performed therein, the estimated annual
expense thereof and the mode of payment therefor.

(b) Be accompanied by a budget of the
association for the current semiannual period and for the next succeeding
semiannual period, which reflects the estimated additional expense of the
maintenance of [such]the branch office.

4. After receipt of an application the [administrator]commissioner
shall determine:

(a) Whether the establishment and maintenance of
the branch office will unduly injure any properly conducted existing
association in the community where the branch office is proposed to be
established or in any neighboring community; and

(b) Whether or not the establishment and
maintenance of the branch office will serve the public interest.

5. Before issuance of a charter for a
branch office, the [administrator]commissioner shall notify all associations doing
business within a radius of 100 miles of the principal place of business of the
applicant, and within a radius of 100 miles of the proposed branch office. Any
association so notified may, within 20 days, protest in writing the granting of
the application. Within 30 days after receipt by the [administrator
of such]commissioner of a written
protest, the [administrator]commissioner shall fix a date for a hearing upon the
protest. The hearing must be held not earlier than 60 days nor more than 90
days after the date of receipt of written notice by registered or certified
mail by the parties.

6. If the [administrator]commissioner finds that no undue injury is likely
to result, that the establishment and maintenance of [such]the branch office is advisable and will serve the
public interest, he may approve the application.

7. Approval of an associations
application for a branch office charter permits the association to establish an
operating office in a temporary or a permanent building, if the building is
placed on or erected at the approved location within 12 months after the
approval.

8. For good cause and after notice to the
association, the [administrator]commissioner may revoke his approval for the
maintenance of a branch office. Failure to establish a branch office in the
manner and within the time permitted under this section constitutes a good
cause for revocation, unless a prior, written request for a waiver of the time
limitation is sought by the association and an extension, in writing, is
granted by the [administrator.]commissioner.

9. An association which maintains one or
more branch offices shall give each branch office a specific designation by
name and include in the designation the word branch and shall prominently
display the designation at the place of business of the branch. When an
association is operating a branch office, all advertising of or by [any such]the
branch office must state clearly the location of the principal office of the
association.

10. The filing fees are:

(a) For filing an original application, $200 for
each branch office. The applicant shall also pay such additional expenses
incurred in the process of investigation as the
[administrator] commissioner deems necessary.

investigation as the [administrator]commissioner deems necessary. All money received
by the [administrator]commissioner pursuant to this subsection must be placed
in the investigative fund created by NRS 232.285.

(b) If the license is approved for issuance,
$100 for each branch office before issuance.

Sec. 243. NRS 673.113 is
hereby amended to read as follows:

673.113 1. Every association
shall maintain bond coverage with a bonding company which is acceptable to the [administrator]commissioner
and the Federal Savings and Loan Insurance Corporation for an amount to be
determined by the [administrator]commissioner not to exceed 5 percent of the total
assets of the association, nor for an amount greater than $3,000,000, covering
all directors, officers, employees, agents, data processing service firms and
all other operating hazards that are normally covered under [such a]the
bond. The bond must be in the form known as Standard Form No. 22, its
equivalent or some other form which may be acceptable to the Federal Savings
and Loan Insurance Corporation and the [administrator.]commissioner. The bond coverage may allow for a
deductible amount or provision adopted under Title 12, Code of Federal
Regulations, Section 563.19(a), (b) and (c), and under any subsequent
amendments thereto.

2. A true copy of the surety bond must be
placed in the custody of the [administrator]commissioner and the original maintained in the
office of the association at all times.

3. The surety bond must provide that a
cancellation thereof, either by the surety company or by the insured, does not
become effective until 10 days notice in writing is first given to the [administrator,]commissioner,
or unless he earlier approves the cancellation in writing.

4. When requested by the [administrator,]commissioner,
the association shall provide a duplicate copy of the invoice showing that the
bond premium has been paid or satisfied.

5. The face amount of the surety bond
must comply with the requirements of the Federal Savings and Loan Insurance
Corporation.

Sec. 244. NRS 673.114 is
hereby amended to read as follows:

673.114 1. No association
may open, maintain or conduct a service office without approval from the [administrator.]commissioner.

2. For good cause, and after notice to
the association, the [administrator]commissioner may revoke his approval for the
maintenance of a service office.

Sec. 245. NRS 673.115 is
hereby amended to read as follows:

673.115 1. An association
shall not issue or publish, or cause or permit to be issued or published, any
advertisement that it is doing or is permitted to do any business which is
prohibited by law to an association, or which misrepresents the nature of its
stock, investment certificates, savings deposits or the right of investors or
depositors in respect thereto.

2. An association may set forth in any of
its advertisements any of the purposes for which it is organized.

3. An association shall not issue,
circulate or publish any advertisement after notice in writing from the [administrator]commissioner
that in his opinion the advertisement is unauthorized, false, misleading or
likely to deceive the public.

4. An association shall not:

(a) State in any advertisement that it is under
state supervision or control.

(b) Include in any advertisement or in any
instrument used by it a replica of the great seal of the State of Nevada.

(c) State or imply in any advertisement that [funds]money
may be invested with [such]the association at any place other than the principal
office or branch of the association.

(d) Use the word deposit or deposits in any
form of advertising, unless the use of [such]that word is authorized in the advertising of a
federal savings and loan association pursuant to federal law.

5. No association may offer or deliver
any gift or premium to any investor or saver of an investment certificate or to
any savings depositor in excess of basic cost to the association of $2.50.

Sec. 246. NRS 673.208 is
hereby amended to read as follows:

673.208 No person is eligible to serve as
a director of an association without the written permission of the [administrator]commissioner
if he:

1. Has been adjudicated a bankrupt or has
taken the benefit of any assignment for the benefit of creditors or has
suffered a judgment recovered against him for a sum of money to remain
unsatisfied of record or not safeguarded by supersedeas bond on appeal for a
period of more than 3 months.

2. Is a director, officer or employee of
any other savings and loan association.

3. Is an officer or employee of a
commercial bank in this state.

4. Is not an investor in [such]the
association, owning in his own right or in a representative capacity as an
executor, administrator, guardian or trustee stock in the association of the
par value of at least $1,000, or full-paid investment certificates in the
association of the value of at least $1,000. For the purpose of this chapter, a
person who owns stock or investment certificates as a joint tenant with one
other person shall be deemed to own, in his own right, one-half of [such]the
stock or investment certificates.

5. Sells or hypothecates all the stock or
investment certificates owned by him, or so much thereof that he ceases to be
the owner, free from encumbrances, of the amount of stock or investment
certificates required by subsection 4.

Sec. 247. NRS 673.209 is
hereby amended to read as follows:

673.209 1. If the [administrator]commissioner
notifies the board of directors of any association, in writing, that he has
information that any director, officer or employee of the association is
failing in the performance of his duties, the board of directors shall meet and
consider the matter forthwith. The [administrator]commissioner must have notice of the time and
place of [such]the meeting. If the board of directors finds the [administrators] commissioners objection to be well founded,
the director, officer or employee shall be removed immediately.

[administrators]commissioners objection to be well founded, the
director, officer or employee shall be removed immediately.

Sec. 248. NRS 673.216 is
hereby amended to read as follows:

673.216 Every official communication by
the [administrator]commissioner directed to the board of directors of an
association must be read at the next meeting of the board of directors and made
a part of the minutes of [such]the meeting.

Sec. 249. NRS 673.2176 is
hereby amended to read as follows:

673.2176 1. An association
shall immediately notify the [administrator]commissioner of any change or proposed change in
ownership of the associations stock which would result in any person,
including a business trust, obtaining 5 percent or more of the associations
outstanding capital stock.

2. An application must be submitted to
the [administrator,]commissioner, pursuant to NRS 673.080, by a person who
acquires:

(a) At least 25 percent of an associations
outstanding stock; or

(b) Any outstanding stock of an association if
the change will result in a change in the control of the association.

Except as provided in subsection 4, the [administrator]commissioner
shall conduct an investigation to determine whether the character and
responsibility of the applicant is such as to command the confidence of the
community in which the association is located. If the [administrator]commissioner denies the application, he may
forbid the applicant from participating in the business of the association.

3. The association with which the
applicant is affiliated shall pay such a portion of the cost of the
investigation as the [administrator]commissioner requires. All money received by the [administrator]commissioner
pursuant to this section must be placed in the investigative fund created by
NRS 232.285.

4. A savings and loan association may
submit a written request to the [administrator]commissioner to waive an investigation pursuant
to subsection 1. The [administrator]commissioner may grant a waiver if the applicant
has undergone a similar investigation by a state or federal agency in
connection with the licensing of or his employment with a financial
institution.

Sec. 250. NRS 673.225 is
hereby amended to read as follows:

673.225 1. Notwithstanding
any other provision of this chapter, every company, association or corporation
licensed under the provisions of this chapter whose accounts are insured by the
Federal Savings and Loan Insurance Corporation or its successor, or which is a
member of a Federal Home Loan Bank or its successor as an insured association,
has the same rights, powers, privileges, immunities and exceptions which are
possessed by any federally chartered association unless expressly denied by the
[administrator.]commissioner.

2. Whenever additional rights, powers,
privileges or exceptions are granted to any federally chartered association,
every company, association or corporation licensed under the provisions of this
chapter whose accounts are federally insured has those
additional rights, powers, privileges or exceptions unless expressly denied by
the [administrator.]

federally insured has those additional rights, powers,
privileges or exceptions unless expressly denied by the [administrator.]commissioner.

Sec. 251. NRS 673.227 is
hereby amended to read as follows:

673.227 1. An association
may purchase or lease property for its office buildings or construct its office
buildings on property purchased or leased by it, if the total cost of land and
improvements does not exceed 70 percent of the sum of the associations
capital, surplus and reserves.

2. With the approval of the [administrator,]commissioner,
senior capital notes of the Federal Savings and Loan Insurance Corporation may
be included in capital for the purposes of this section.

Sec. 252. NRS 673.250 is
hereby amended to read as follows:

673.250 1. No association
may sell or issue any of its common or preferred stock until it has first
applied for and secured from the [administrator]commissioner a license authorizing it so to do as
provided in NRS 673.080.

2. Every license must recite in bold type
that the issuance of the license is permissive only and does not constitute a
recommendation or endorsement of the stock permitted to be issued.

3. Before the sale of, or option to buy,
any additional authorized but unissued common or preferred stock, the
association must have the written approval of the [administrator.]commissioner.

4. The [administrator]commissioner may impose conditions requiring the
impoundment of the proceeds from the sale of any stock, limiting the expense in
connection with the sale and such other conditions as are reasonable and
necessary or advisable to ensure the disposition of the proceeds from the sale
of the stock in the manner and for the purposes provided in the license.

Sec. 253. NRS 673.260 is
hereby amended to read as follows:

673.260 1. The license
mentioned in NRS 673.250 authorizes the company, association or corporation to
whom it is issued to sell its approved securities and contracts within this
state for the remainder of the fiscal year ending on June 30 next succeeding.
Each license is renewable, under like restrictions, annually thereafter.

2. For the issuing of any license
provided for in NRS 673.250 and for any renewal thereof, the fee of the [administrator]commissioner
is:

(a) For each home office, $200 plus 15 cents for
each $1,000 of total assets of the company, association or corporation as of
December 31 of each year.

(b) For each branch office, $100.

3. The fees must accompany the license
renewal application. A penalty of 10 percent of the fee payable must be charged
for each month or part thereof that the fees are not paid after June 30 of each
year.

4. All sums so received by the [administrator]commissioner
must be forthwith delivered to the state treasurer and must be paid into the
state general fund.

673.270 1. No person may, as
a soliciting agent, soliciting representative or employee of any [such] foreign or domestic company,
association or corporation, or in any other capacity, sell or solicit sales for
any securities such as investment certificates or savings accounts or contract
for the sale of securities until he is first licensed as a salesman or
solicitor for sales of [such]those securities by the [administrator.]commissioner.

2. No person may be licensed for a period
of more than 1 year, and he may not be licensed until he has first satisfied
the [administrator]commissioner as to his personal integrity.

3. For the issuing of any license
provided for in this section and for any renewal thereof, the fee of the [administrator]commissioner
is $5. All sums so received by the [administrator]commissioner must be delivered to the state
treasurer and must be paid into the state general fund.

4. Tellers or other employees of an
insured savings and loan association are exempt from [such]the licensing requirements unless their
employment entails soliciting sales outside their respective offices as
commission salesmen.

Sec. 255. NRS 673.273 is
hereby amended to read as follows:

673.273 1. Except as
permitted by subsection 6, the total common stock and any preferred stock
subscribed and paid plus the total of the surplus, undivided profits and all
reserves available for losses must not at any time be less than 5 percent of
the aggregate certificate value of the outstanding investment certificates of
the association after the 11th anniversary of the date of insurance of
accounts. The stock surplus, undivided profits and reserves must be at least
equal to the percentage of outstanding investment certificates on each prior
anniversary as stated below:

Second anniversary of date of
insurance of accounts................. 3.20 percent

Third anniversary of date of
insurance of accounts.................... 3.40 percent

Fourth anniversary of date of
insurance of accounts.................. 3.60 percent

Fifth anniversary of date of
insurance of accounts...................... 3.80 percent

Sixth anniversary of date of
insurance of accounts..................... 4.00 percent

Seventh anniversary of date of
insurance of accounts............... 4.20 percent

Eighth anniversary of date of
insurance of accounts.................. 4.40 percent

Ninth anniversary of date of
insurance of accounts.................... 4.60 percent

Tenth anniversary of date of
insurance of accounts................... 4.80 percent

2. No dividends may be declared on common
or preferred stock until the total of the common stock, preferred stock,
surplus, undivided profits and all reserves available for losses is equal to
the percentage required by subsection 1 of the outstanding investment
certificates and if payment of those dividends would reduce the capital
structure to an amount below that percentage.

3. Subject to the provisions of this
chapter, common stock and any preferred stock is entitled to the rate of
dividend, if earned, fixed by the board of directors.

board of directors. Stock dividends may be declared by the
board of directors at any time, payable only from otherwise unallocated surplus
and undivided profits.

4. No stock dividend may be declared and
paid for any period in which the association has not declared and paid interest
upon its withdrawable accounts.

5. The liability of an association on
account of any capital notes which are subordinated to all outstanding
investment certificates shall be deemed a reserve available for losses for the
purposes of subsection 1 and of NRS 673.274, but no dividends may be declared
on common or preferred stock while [any such]the capital notes are outstanding, without the
written permission of the [administrator.]commissioner.

6. The [administrator]commissioner may approve a lower ratio of the
total common stock and any preferred stock, undivided profits and all reserves
which must be available for losses to the aggregate of outstanding investment
certificates. The [administrator]commissioner shall not approve any ratio which would
impair the insurance of the associations accounts by the Federal Savings and
Loan Insurance Corporation.

Sec. 256. NRS 673.274 is
hereby amended to read as follows:

673.274 1. No association
whose stock, surplus, undivided profits and reserves are less than the amount
specified in NRS 673.273 or approved by the [administrator]commissioner may:

2. The provisions of this section do not prohibit
the association from crediting to investment certificates the interest earned
thereon, or crediting to withdrawable accounts the interest thereon, if the
payment of the interest is not otherwise prohibited by the provisions of this
chapter.

Sec. 257. NRS 673.275 is
hereby amended to read as follows:

673.275 1. If the [administrator,]commissioner,
as a result of any examination or from any report made to him, finds that the
common or preferred stock of any association is impaired, he shall notify the
association that the impairment exists and shall require the association to
make good the impairment within 90 days after the date of the notice.

2. If the amount of the impairment as
determined by the [administrator]commissioner is questioned by the association, then
upon application filed within 10 days after the notice from the [administrator]commissioner
that the impairment exists, the association may have the value of the assets in
question be determined by appraisals made by independent appraisers acceptable
to the [administrator]commissioner and the association.

3. The directors of the association upon
which the notice has been served shall levy a pro rata assessment upon the
common and any preferred stock to make good the impairment. They shall cause
notice of the requirement of the [administrator]
commissioner and of the levy to be given in writing to each stockholder of the
association, and the amount of assessment which he must pay for the purpose of
making good the impairment.

[administrator]commissioner and of the levy to be given in writing to
each stockholder of the association, and the amount of assessment which he must
pay for the purpose of making good the impairment. In lieu of making the
assessment, the impairment may be made good, without the consent of the [administrator,]commissioner,
by reduction of the common or preferred stock. Any stockholder who does not
make payment under [such an]the assessment shall transfer sufficient stock to the
association to pay his pro rata share of the assessment, and there is no
further liability to the stockholder.

Sec. 258. NRS 673.2755 is
hereby amended to read as follows:

673.2755 1. An association
may issue investment certificates, with or without passbooks. The holders of
investment certificates are not liable for debts or assessments, and are
entitled upon liquidation of an association to receive payment in full before
any payment or distribution is made to stockholders. The holders of investment
certificates have no right to participate in the profits of the association.

2. Investment certificates may be issued
as fully paid investment certificates, accumulative investment certificates,
minimum term investment certificates or other types of certificates approved by
the [administrator. The administrator]commissioner. The commissioner shall not approve
any certificates whose issuance would impair the insurance of the associations
accounts by the Federal Savings and Loan Insurance Corporation.

Sec. 259. NRS 673.2765 is
hereby amended to read as follows:

673.2765 1. An association
may invest in the capital stock, obligations or other securities of a related
service corporation organized under the laws of this state, except a
corporation organized for the underwriting or sale of insurance, subject to any
regulations concerning the insurability of the associations accounts by the
Federal Savings and Loan Insurance Corporation and to whatever regulations the [administrator]commissioner
may impose in this regard, if the entire capital stock of the corporation is
available for purchase by associations organized under the laws of this state
only.

2. No association may make [any such]the
investment if its aggregate, outstanding investments, pursuant to subsection 1,
would then be in excess of 1 percent of its assets.

Sec. 260. NRS 673.2766 is
hereby amended to read as follows:

673.2766 1. Any investment
in real property for purposes of subdivision or for residential development
must not exceed the market value or appraisal valuation as evidenced by an
appraisal report prepared within 120 days of [such]the investment by a member of the American Institute
of Real Estate Appraisers, the Society of Real Estate Appraisers, or the
Independent Fee Appraisers Society, or by such other appraiser as may be
approved by the [administrator.]commissioner.

2. Within 30 days after [such]the
investment is made, the association shall provide the [administrator]commissioner with a certified copy of one or more
appraisal reports on the real property involved and with a title insurance company report, reflecting the chain of title for a
period of at least 3 years and the amount of consideration, as available, given
for each title transfer that may have occurred during the reported period.

insurance company report, reflecting the chain of title for
a period of at least 3 years and the amount of consideration, as available,
given for each title transfer that may have occurred during the reported
period.

3. The [administrator]commissioner may require a statement from the
association disclosing whether any director, officer or employee of the
association has a direct or indirect interest in the real property involved or
has had [any such]an interest at any time during the past 3 years. Stock
ownership in an interested corporation may be considered the direct or indirect
interest of the investor. Failure to make [any
such]a required disclosure is
unlawful.

Sec. 261. NRS 673.281 is
hereby amended to read as follows:

673.281 1. No association
may sell, exchange, transfer, pledge, hypothecate or otherwise dispose of or
encumber any notes or other obligations held by it, evidencing any loan made or
purchased by it, or the mortgages, trust deeds or other security therefor, that
has been on the books of the association for 3 years or longer, without the
approval of the [administrator.]commissioner. All loans sold must be sold without
recourse and, if under a contract to service them, then on a basis to provide
sufficient compensation to the association to reimburse it for expenses
incurred under its service contract.

2. This section does not apply to loans
sold in which the association retains a participating interest, nor to loans
pledged as security for borrowing as provided in NRS 673.300 and 673.302.

Sec. 262. NRS 673.302 is
hereby amended to read as follows:

673.302 The aggregate amount of all
borrowings of any association in force at any one time, excluding borrowings
from the Federal Home Loan Banks, the Federal Savings and Loan Insurance
Corporation [,] or other similar
federal agencies, must not exceed 5 percent of the total assets of the
association without the approval of the [administrator.
The administrator]commissioner. The
commissioner shall not approve any borrowing which would impair the
insurance of the associations accounts by the Federal Savings and Loan
Insurance Corporation.

Sec. 263. NRS 673.316 is
hereby amended to read as follows:

673.316 1. Nothing in this
chapter requires any association to sell, transfer or dispose of any investment
or loan made or purchased by the association before March 30, 1959. Any
association may:

(a) Renew, extend the time of payment of, or
rewrite any loan made before that date.

(b) Make additional advances or loans for the
purpose of preserving the security of the loan or for the purpose of protecting
the property securing the loan.

(c) Make any [such]
renewal, extension, advance or loan to the borrower or to any successor in
interest in the property securing the loan.

(d) Make loans on property sold by an
association or extend credit thereon for the purpose of facilitating the sale
of the property regardless of any other provision of this chapter.

2. No advance or loan may be made under
the provisions of this section if the advance or loan would increase the total
liability to the association making the advance or loan to more than 2 percent
of total assets, except with the approval of the [administrator.]commissioner.

3. For the purpose of preserving the
security of any loan or of protecting the property securing any loan made in
compliance with this chapter, an association may make additional advances or
loans to the borrower or any successor in interest in the property securing the
loan. Regardless of any other provision of this chapter an association may make
loans or extend credit for the purpose of facilitating the sale of property
acquired by repossession, foreclosure or conveyance in lieu of foreclosure if
that activity conforms to generally accepted accounting practices.

Sec. 264. NRS 673.317 is
hereby amended to read as follows:

673.317 No loan may be made upon the
appraisement of, nor may compensation for any appraisement be paid to the
appraiser, officer or member of any committee who has not been first approved
in writing by the [administrator]commissioner for the association. The approval is
subject to such limitations as the [administrator]commissioner provides, and may be revoked for
cause by the administrator, after giving due notice to the appraiser and the
association and holding a hearing. The association shall give notice in writing
to the [administrator]commissioner of the termination of the services of any
appraiser within 15 days of [such]the termination.

Sec. 265. NRS 673.318 is
hereby amended to read as follows:

673.318 Every association shall appraise
each parcel of real estate at the time of acquisition thereof. The report of
each [such] appraisal must be
submitted in writing to the board of directors and must be kept in the records
of the association. The [administrator]commissioner may require the appraisal of real
estate securing loans by an appraiser selected by the [administrator.]commissioner. The association whose securities
are appraised under this section shall pay the expense of [such]the
appraisal to the [administrator]commissioner upon demand. Money so received must be
paid into the state general fund. Copies of appraisals must be furnished to the
association.

Sec. 266. NRS 673.319 is
hereby amended to read as follows:

673.319 1. The [administrator]commissioner
may require each association to establish and maintain a specific loss reserve
for the amount by which the book value of any asset exceeds the [administrators]commissioners
appraisal of [such]the asset.

2. In determining the values of the
security properties for a group of loans, the [administrator]commissioner may use his appraisal of each
property or his estimate of the total value of [such]the properties based upon his appraisal of a
reasonable sample thereof. If any association contests the validity of the
estimate based upon a sample, it may have an appraisal, at its own expense, by
an appraiser approved by the [administrator,]commissioner, of all the group from which the
sample was drawn, or of a larger sample of the group than was recommended by
the [administrator.]commissioner.

3. If the [administrator]commissioner has directed an association to carry
a specific loss reserve on its books, the amount so designated for this purpose
by the [administrator]commissioner cannot be reduced or changed in any manner
without his written approval.

4. The provisions of subsections 2 and 3 [shall be]are
effective on July 1, 1967, but [shall]must not be applied retroactively.

Sec. 267. NRS 673.3244 is
hereby amended to read as follows:

673.3244 1. No association
may make any loans to a:

(a) Corporation if the majority of the stock is
owned or controlled individually or collectively by any one or more of the
directors, officers or majority stockholders of the association; or

(b) Partnership if the limited or general
partner is a director, officer or the majority owner of the association,

unless the loan is expressly authorized by this chapter or
by a resolution of the board of directors of the association. The resolution
must be approved by a vote of at least two-thirds of all the disinterested
directors of the association.

2. An association may make loans to any
corporation or partnership in which a director or officer of the association is
a minority stockholder or partner if the loan is authorized or confirmed, at a
meeting held within 30 days after the loan is made, by the affirmative vote of
all the disinterested directors of the association present at the meeting and
if the affirmative vote constitutes a majority of all the directors of the
association. The interested director or officer shall not vote or participate
in any manner in the action of the board of directors upon the loan. The
authorization or confirmation must be entered in the minutes of the
association. The loan must in all other respects comply with the provisions
covering the granting of loans.

3. If a loan is made to a corporation or
partnership as set forth in subsection 2, and if the director or officer of the
association owns more than 10 percent of the paid-in capital of the
corporation, or if any two or more officers or directors own more than 20
percent of the paid-in capital of the corporation or if any one or more of the
directors is a general partner, the association shall file reports with the [administrator]commissioner
showing the following:

(a) The fact of making the loan.

(b) The names of the directors authorizing or
confirming the loan.

(c) The corporate or partnership name of the
borrower.

(d) The name of each director or officer of the
association who is a stockholder, officer, director or partner of the
corporation or partnership to which the loan was made.

(e) The amount of stock held by the officer or
director in the corporation.

(f) The amount of the loan, the rate of interest
thereon, the time when the loan becomes due, the amount, character and value of
the security given therefor, and the fact of final payment when made.

4. All officers, directors or
stockholders holding more than 10 percent of the paid-in capital of the
association shall disclose annually to the [administrator]
commissioner their investments in any partnership or corporation to which a
loan is made.

[administrator]commissioner their investments in any partnership or
corporation to which a loan is made. If any changes in those investments occur,
the [administrator]commissioner must be notified.

Sec. 268. NRS 673.3271 is
hereby amended to read as follows:

673.3271 1. An association
shall not make at one time loans to any one borrower, or under any one
transaction, or applicable to any one project, or tract, if the loans in the aggregate
are in excess of whichever of the following is the lesser:

(a) Ten percent of its total savings accounts,
unless that requirement is waived by written approval of the [administrator.]commissioner.

(b) An amount equal to the sum of its capital, surplus,
undivided profits, loan reserve, federal insurance reserve, capital notes and
such other reserves as the [administrator]commissioner may prescribe.

2. For the purpose of this section, the
term one borrower means:

(a) Any person or entity that is, or that upon
the making of a loan will become, obligor on a loan.

(b) Nominees of the obligor.

(c) All persons, trusts, partnerships,
syndicates and corporations of which the obligor is a nominee or a beneficiary,
partner, member, or stockholder of record or beneficial interest stockholder
owning 10 percent or more of the capital stock of any corporation.

(d) If [such]the obligor is a trust, partnership, syndicate or
corporation, all trusts, partnerships, syndicates and corporations of which any
beneficiary, partner, member, or stockholder of record or beneficial interest
stockholder owning 10 percent or more of the capital stock is also a
beneficiary, partner, member or stockholder of record or beneficial interest
stockholder owning 10 percent or more of the capital stock of [such]the
association.

3. For the purpose of this section, the
term loans to any one borrower means the amount of the new loan plus the
total balances of all outstanding loans owed to the association by [such]the
borrower. Notwithstanding any other limitations of this section, [any such]the
loan may be made if the new loan when added to the total balances of all
outstanding loans owed to the association by [such]the borrower does not exceed $250,000.

4. For the purpose of this section, the
term balances of all outstanding loans means the original amounts loaned by
the association plus any additional advances and interest due and unpaid, less
repayments and participating interests sold and exclusive of any loan on the
security of real estate the title to which has been conveyed to a bona fide
purchaser of the real estate.

5. If an association makes a loan to any
one borrower in an amount which, when added to the total balances of all
outstanding loans owed to the association by [such]the borrower, exceeds $250,000, the records of
the association with respect to the loan must include documentation showing
that the loan was made within the limitations of this chapter. For the purpose
of [such]that
documentation, the association may require, and may accept in good faith, a certification by the borrower identifying the
persons, entities and interests described in the definition of one borrower in
subsection 2.

good faith, a certification by the borrower identifying the
persons, entities and interests described in the definition of one borrower in
subsection 2.

Sec. 269. NRS 673.332 is
hereby amended to read as follows:

673.332 1. An association
may hold, manage and convey real property, including apartments and other
buildings:

(a) Acquired by foreclosure or a conveyance in
lieu of foreclosure; or

(b) Developed or built by the association.

Unless the association has received a written waiver from
the [administrator,]commissioner, the total of money which it has advanced
or committed for property which it has developed or built may not exceed twice
the sum of its capital, surplus, undivided profits, loan reserve, federal
insurance reserve and any other reserves specified by the [administrator.]commissioner.

2. When an association acquires title to
any real property pursuant to subsection 1, the document representing the
transaction must be recorded immediately. This subsection does not require
recordation of the evidences of any transfer of stock resulting from
foreclosure of an interest in a cooperative housing corporation.

3. An appropriate real-estate-owned
account must be set up for the property acquired and a separate subsidiary
ledger or other appropriate record must be maintained therefor. The amount carried
in the account must be the sum of the unpaid principal balance of the loan plus
foreclosure costs, less any advance payments and any [funds]money held in the loans-in-process account at the
time of acquisition, together with:

(a) Any amounts paid after acquisition for real
property taxes which have accrued [prior to]before acquisition;

(b) Assessments due or delinquent at the time of
acquisition; and

(c) Necessary acquisition costs and costs of
insurance premiums.

4. The subsidiary ledger record or other
appropriate record on each property acquired must indicate:

(a) The type and character of the property
acquired.

(b) All capitalized items of investment with
related costs.

(c) Former loan or contract of sale account
numbers.

Sec. 270. NRS 673.333 is
hereby amended to read as follows:

673.333 1. The apportionment
of earnings or payment of interest by declaration of the board of directors
must be made semiannually on June 30 and December 31 of each year, or quarterly
on those dates, and on March 31 and September 30 of each year.

2. The percentage rate of the declaration
must be determined by the board of directors as it deems expedient for the
safety and security of all savings depositors, but if the percentage rate is
excessive, unjust or inequitable, it is subject to disapproval of, and
reduction by the [administrator.]commissioner. The association may appeal any
disapproval or reduction by the [administrator]commissioner to the director.

3. No association may be required to pay
or credit interest on accounts of $10 or less which show no entries of debit or
credit for a period of 2 years, except for accumulated interest credits.

4. Except as otherwise provided in this
chapter, interest must be declared on the participation value of each account
at the beginning of the interest period, plus payments on the account made
during the interest period, less amounts withdrawn, which for interest purposes
must be deducted from the latest previous payments on the account, computed at
the rate for the time invested, determined as provided in this section.

5. The date of investment is the date of
actual receipt by the association, except that the board of directors may fix a
date, which may not be later than the 10th day of the month, for determining
the date of investment on which interest is computed. A date later than the
10th may be set if it is permissible for federal associations. If permitted by
federal regulations, as amended, the board of directors may permit investments
to receive interest calculated from the date of actual receipt.

6. In addition to the classes of savings
accounts provided for in this chapter, an association may, with the approval of
its board of directors, authorize additional classes of savings accounts which
will conform to those types or classes, which have been established by the
Federal Home Loan Bank Board by regulation or which may be authorized by it.

7. Except when prescribed for all
associations by federal regulation, any association which changes its method of
calculating interest on its savings accounts so as to decrease the effective
yield of that account shall notify each account holder affected by the change
by mail within 15 days before the proposed effective date of the change.

Sec. 271. NRS 673.377 is
hereby amended to read as follows:

673.377 1. Every association
shall have on hand at all times in available [funds,]money, bank deposits, United States Government
bonds, certificates of insured savings and loan associations, Federal Home Loan
Bank evidences of indebtedness, time certificates of insured federal and state
banks or of any indebtedness of any United States Government instrumentality
which is by statute fully guaranteed, a sum not less than 5 percent of the
aggregate of savings accounts and investment certificates to enable it to pay withdrawals
in excess of receipts and to meet accruing expenses. The [administrator]commissioner
may prescribe from time to time different amounts required for liquidity
purposes, but the amounts must not be less than 4 percent or more than 8
percent.

2. A deposit in a bank or association
under the control or the possession of appropriate supervisory authority must
not be considered as cash. Except for deposits in a Federal Home Loan Bank, a
time deposit established hereafter, whether or not time deposit-open account or
deposit evidenced by a certificate of deposit, must not be considered as cash
for such purposes unless:

(a) The member itself made the deposit in
question;

(b) The deposit, together with all other time
deposits of the association in the same bank, does not exceed the greater of
one-quarter of 1 percent of the banks total deposits as of the banks last
published statement of condition or $15,000; and

(c) No consideration was received from a third
party in connection with the making of the deposit.

3. An association [shall]must not make or purchase any loan, other than
advances on the sole security of its savings accounts, at any time when its
liquidity drops below the required level. For the purpose of this section, a
loan is deemed to have been made as of the date the borrower executed the
security instrument, and a loan is deemed to have been purchased as of the date
of the payment therefor.

Sec. 272. NRS 673.390 is
hereby amended to read as follows:

673.390 1. Except as
provided in this section, withdrawals must be paid in the order of their
filing, and no loans or investments may be made, except by permission of the [administrator,]commissioner,
when any withdrawal request or order has remained on file unpaid for a period
of more than 30 days. Any [such]
foreign or domestic association, company or corporation may, without the
necessity of obtaining permission of the [administrator,]commissioner, make or purchase loans or
investments not exceeding the principal amount of money borrowed by [such]an
association, company or corporation from a Federal Home Loan Bank or other
federal loan agency. Any such request or order which is not legally payable for
reasons other than the restrictions of this section [shall]may not be considered as on file.

2. Whenever applications for withdrawals
reach such an amount that in the opinion of the [administrator,]commissioner, it would be inexpedient to pay such
applications in the order of their filing, the, with the written permission of
the [administrator]commissioner first obtained, so much as may be directed
by the [administrator]commissioner of the money available to pay withdrawals
may, each month, be prorated upon the amounts of all applications for
withdrawals on file, irrespective of the order of filing.

Sec. 273. NRS 673.420 is
hereby amended to read as follows:

673.420 Any such foreign or domestic
association, company or corporation or its secretary or manager shall
immediately notify the [administrator]commissioner of its inability to pay [any such]a
withdrawal request or order which has been on file for a period of more than 60
days.

Sec. 274. NRS 673.430 is
hereby amended to read as follows:

673.430 1. Each association
doing business in this state shall file annually with the [administrator]commissioner
on or before March 1, a sworn statement in two sections.

2. One section of the annual report must
contain, in such form and detail as the [administrator]commissioner may prescribe, the following:

(a) The amount of authorized capital by classes
and the par value of each class of stock.

(b) A statement of its assets, liabilities and
capital accounts as of the immediately preceding December 31.

(c) Any other facts which the [administrator]commissioner
may require.

This section must be furnished in duplicate, one certified
copy to be returned, for publication at least two times in a newspaper having a
general circulation in each county in which the
association maintains an office.

circulation in each county in which the association
maintains an office. Publication must be completed on or before May 1, and
proof of publication must be filed in the office of the [administrator.]commissioner.

3. One section of the annual report must
contain such other information as the [administrator]commissioner may require to be furnished. This
section need not be published and must be treated as confidential by the [administrator.]commissioner.

4. Every association shall pay to the [administrator]commissioner
for supervision and examination:

(a) An annual fee of $200 for its home office,
and $100 for each branch office open as of the immediately preceding December
31.

(b) An annual assessment computed as of the
immediately preceding December 31 at the rate of 15 cents per $1,000 of total
assets.

5. The [administrator]commissioner shall determine from the annual
statement the amount due from each association and submit a bill to the
association for the amount by March 15. A penalty of 10 percent of the fee
payable must be charged for each month or part of a month that the fees are not
paid after April 15 of each year.

6. All sums so received by the [administrator]commissioner
must be delivered to the state treasurer and paid into the state general fund.

Sec. 275. NRS 673.440 is
hereby amended to read as follows:

673.440 Each such foreign or domestic
association, company or corporation shall cause to be supplied to the [administrator]commissioner
at any time, upon his demand, any information which he may require as to its
condition, affairs or methods.

Sec. 276. NRS 673.450 is
hereby amended to read as follows:

673.450 1. The [administrator]commissioner
may conduct or cause to be conducted such hearings, investigations or
examinations of the books and records, wherever they may be, relating to the
affairs of such organizations as he may deem expedient and in aid of the proper
administration of the provisions of this chapter.

2. In connection with the conduct of any
hearing, investigation or examination, the [administrator]commissioner or other person designated by him to
conduct it may:

(a) Compel the attendance of any person by
subpena.

(b) Administer oaths.

(c) Examine any person under oath concerning the
business and conduct of affairs of any association subject to the provisions of
this chapter, and require the production of any books, papers, records, money
and securities relevant to the inquiry. Any willful false swearing is perjury
and is punishable as such.

3. The [administrator]commissioner shall conduct at least once every 2
years an examination of the books and records of each association licensed
under this chapter.

673.453 1. In case of the
refusal of any person to attend or testify or produce any papers required by
the subpena directed to be served under the provision of NRS 673.450, the [administrator]commissioner
may report to the district court in and for the county in which the
examination, hearing or investigation is pending by petition, setting forth
that:

(a) Due notice has been given of the time and
place of attendance of [such]the person or the production of the books and papers;

(b) [Such]The person has been subpenaed in the manner
prescribed in this chapter; and

(c) [Such]The person has failed and refused to attend or
produce the papers required by subpena before the [administrator]commissioner in the examination, hearing or
investigation named in the subpena, or has refused to answer questions
propounded to him in the course of such examination, hearing or investigation,

and asking an order of the court compelling [such]the
person to attend and testify or produce the books or papers before the [administrator.]commissioner.

2. The court, upon petition of the [administrator,]commissioner,
shall enter an order directing [such]the person to appear before the court at a time
and place to be fixed by the court in such order, the time to be not more than
10 days from the date of the order, and then and there show cause why he has
not attended or testified or produced the books or papers before the [administrator.]commissioner.
A certified copy of the order must be served upon [such]the person. If it appears to the court that the subpena
was regularly issued by the [administrator,]commissioner, the court shall thereupon enter an
order that [such]the person appear before the [administrator]commissioner at the time and place fixed in the
order and testify or produce the required books or papers; and upon failure to
obey the order [such]the person shall be dealt with as for contempt of
court.

Sec. 278. NRS 673.455 is
hereby amended to read as follows:

673.455 1. The [administrator]commissioner
may, at the time of examining a savings and loan association, inspect the
books, ledgers and minutes of any corporation which is registered or required
to be registered under section 408 of the National Housing Act as a holding
company whenever, in his discretion, he considers it advisable to ascertain
facts which may relate to transactions between the holding company and the
affiliated association. The provisions of NRS 673.450 apply to the examination
of such corporation.

2. Upon making findings to that end, the [administrator]commissioner
may order the discontinuance of borrowing or lending, selling or buying of
assets, extending credit or guaranteeing obligations of the holding company
which has been undertaken without the written approval of the [administrator.]commissioner.

3. No unreasonable supervisory fees may
be imposed upon any association by a holding company which controls [such]an
association.

673.460 1. Whenever in
connection with [such examinations]an examination it is necessary or expedient that
the [administrator]commissioner or his deputy, or both, leave this state,
there must be assessed against the organization under examination a fee of $25
per day for each [such] person
while without the state in [such connection,]connection with an examination, together with all
actual and necessary expenses.

2. The fee [so]
charged must be remitted to the [administrator,]commissioner, who shall deliver it to the state
treasurer .[forthwith,
and such]The fees shall be paid
into the state general fund.

Sec. 280. NRS 673.470 is
hereby amended to read as follows:

673.470 In lieu of making any
examination, the [administrator]commissioner may accept any examination of any
association made by the Federal Home Loan Bank Board, any Federal Home Loan
Bank, or the Federal Savings and Loan Insurance Corporation, or may examine any
such institution in conjunction with the Federal Home Loan Bank Board, a
Federal Home Loan Bank, or the Federal Savings and Loan Insurance Corporation.

Sec. 281. NRS 673.480 is
hereby amended to read as follows:

673.480 The [administrator,]commissioner, his agents and employees may
furnish to the Federal Home Loan Bank Board, or to any Federal Home Loan Bank,
or to examiners appointed by the Federal Home Loan Bank Board or any Federal
Home Loan Bank, or to any federal loan agency, copies of any instruments
concerning, and may disclose any information with reference to, the conditions
or affairs of any such foreign or domestic association, company or corporation.

Sec. 282. NRS 673.483 is
hereby amended to read as follows:

673.483 1. Each association
shall, at least once each year, cause its books and accounts to be audited at
its own expense by a certified public accountant or firm of such accountants
selected by the association and approved by the [administrator.]commissioner.

2. The [administrator]commissioner may prescribe the scope of the
audit.

3. A certified copy of the audit,
including the management and internal control letters relating to the audit, must
be furnished to the [administrator.]commissioner.

Sec. 283. NRS 673.484 is
hereby amended to read as follows:

673.484 The [administrator]commissioner may after notice and hearing suspend
or revoke the charter of any association for repeated failure to abide by the
provisions of this chapter or the regulations adopted thereunder.

Sec. 284. NRS 673.4845 is
hereby amended to read as follows:

673.4845 1. An association
may reorganize, merge or consolidate with another state or federal association,
if the reorganization, merger or consolidation is based upon a plan which has
been adopted by the board of directors and approved at a regular or special
stockholders meeting which has been called to consider the action. [Such an]The
approval must rest on a favorable vote of a majority of
the voting power of the association as established by its articles.

favorable vote of a majority of the voting power of the
association as established by its articles.

2. Any such plan for reorganization,
merger or consolidation must be approved by the [administrator,]commissioner, who shall satisfy himself that the
plan, if approved, would be equitable for the stockholders of the affected
association or associations and would not impair the usefulness or success of
other properly conducted associations in the community. In submitting an
application for approval of any such plan, each association proposing to
reorganize, merge or consolidate must provide a comprehensive review of its
present financial statement and a projected view of the financial statement of
the reorganized, merged or consolidated association.

3. Unless its action is specifically
authorized by or taken in conformity with this chapter, no association may,
directly or indirectly:

(a) Reorganize, merge or consolidate.

(b) Assume liability to pay savings accounts or
other liabilities of any financial institution or any other organization,
person or entity.

(c) Transfer assets to any financial institution
or any other organization, person or entity in consideration of the
transferees assumption of liability for any portion of the transferors
savings accounts, deposits or other liability.

(d) Acquire the assets of any financial
institution or any other organization, person or entity.

4. Each application which is made under
this section must be accompanied by a fee payment of $150. The responsibility
for payment of the fee must be shared equally by the associations participating
in each proposed plan.

Sec. 285. NRS 673.485 is
hereby amended to read as follows:

673.485 1. If the [administrator]commissioner
finds as the result of any examination or from any report made to him or to any
association doing business in this state or from any report made to any of its
investors that the association is violating the provisions of its articles of
incorporation, charter, bylaws, or any law of this state, or is conducting its
business in an unsafe or injurious manner, he may by an order addressed to such
association direct a discontinuance of such violations or unsafe or injurious
practices and a conformity with all the requirements of law.

2. If an association does not comply with
such order, the [administrator]commissioner may order the corporate secretary to call
a special directors meeting to consider the matter of noncompliance.

3. The meeting must be held no later than
60 days after issuance of the order to hold the meeting, unless otherwise
restrained by court order or by the board. The business of the meeting must be
limited to the matter of noncompliance and remedies therefor and the notice of
such meeting must set forth in detail the [administrators]commissioners discontinuance order and order to
call a directors meeting.

4. Action taken at the meeting is binding
upon the officers of the association.

673.495 1. The [administrator]commissioner
may, with the prior approval of the board, appoint a conservator for [such]an
association if any of the following occur:

(a) The association does not comply with any
order given pursuant to NRS 673.485, within the time specified therein.

(b) It appears to the [administrator]commissioner that the association is in an unsafe
condition or is conducting its business in an unsafe or injurious manner such
as to render its further proceeding hazardous to the public or to any or all of
its investors.

(c) The [administrator]commissioner finds that the associations assets
are impaired to such an extent that, after deducting all liabilities other than
to its investors they do not equal or exceed the sum of the value of its
outstanding savings accounts and investment certificates and the par value of
its outstanding stock.

(d) The association refuses to submit its books,
papers and accounts to the inspection of the [administrator]commissioner or any of his examiners, deputies or
assistants.

(e) Any officer of the association refuses to be
examined upon oath concerning the affairs of the association.

(f) It appears to the [administrator]commissioner that false reports have been filed
with his office.

2. The conservator may be the [administrator,]commissioner,
his deputy or any person qualified for such appointment.

3. Immediately upon appointment, the
conservator shall petition the district court of the county in which the home
office of the association is located for confirmation of his appointment. The
court has exclusive jurisdiction to determine the issues and all related
matters and it shall give precedence to such conservatorship proceedings and
expedite the proceedings in every way.

Sec. 287. NRS 673.497 is
hereby amended to read as follows:

673.497 1. The conservator
confirmed or appointed by the court has all the power expressed in the court
order and the following:

(a) All the rights, powers and privileges
possessed by the directors, officers and stockholders.

(b) The power to request the resignation of or
remove any director, officer or employee for cause and upon written notice,
which must show the [administrators]commissioners approval of [such]the
action.

(c) The power to accept new savings accounts and
additions to existing accounts, which must become segregated accounts and
amounts, if the [administrator]commissioner so orders in writing, not subject to
offset and not available for liquidating any indebtedness of an association
existing at the time the conservator was appointed.

2. The conservator may not:

(a) Retain special counsel or other experts
without prior approval of the court;

(c) Liquidate assets except in the normal course
of operations or for the preservation of existing asset values.

3. All expenses of the association during
the conservatorship must be paid by the association.

4. The amount of compensation for the
conservator must be determined by the court and paid by the association. When
either the [administrator]commissioner or his deputy has been appointed
conservator, the compensation must be paid to the state treasurer.

5. During the conservatorship, debtors to
the association shall continue to make payments to the association as may be
required under the terms of their respective contracts.

6. Savings account depositors may, with
the approval of the conservator, withdraw all or any part of their savings
accounts under the provisions of this chapter or under such regulations as the [administrator]commissioner
may prescribe.

7. The conservator shall return the
association to the board of directors if the conditions complained of by the [administrator]commissioner
have been removed within 12 months after his appointment. If no [such] change has been effected within
that time, a receiver may be appointed by the [administrator]commissioner as provided in this chapter.

Sec. 288. NRS 673.499 is
hereby amended to read as follows:

673.499 1. If the [administrator]commissioner
finds that any association:

(a) Is in an impaired condition;

(b) Is engaging in practices which threaten to
result in an impaired condition; or

(c) Is in violation of an order or injunction,
as provided in NRS 673.495, which has become final in that the time to appeal
has expired without appeal or a final order entered from which there can be no
appeal,

the [administrator]commissioner may appoint a receiver for such
association, which may be the [administrator,]commissioner, his deputy or any other person, and
upon such appointment shall apply immediately to a court of general
jurisdiction in the county in which the home office of the association is
located for confirmation of such appointment, and such court has exclusive
jurisdiction to determine the issues and all related matters. Such proceedings
must be given precedence over other cases pending in such court, and must in
every way be expedited. Such court shall confirm such appointment if it finds
that one or more [such] grounds
exist, and a certified copy of the order of the court confirming such
appointment is evidence thereof. In the case of an insured association, the
appointment by the [administrator]commissioner of a receiver under this section
constitutes an official determination of a public authority of this state
pursuant to which a receiver is appointed for the purpose of liquidation as
contemplated by and within the meaning of section 406 of the National Housing
Act of 1934, as amended, if, within 10 days after the date the application of
the [administrator]commissioner is filed, confirmation of such appointment
or denial of confirmation has not been issued by the
court.

denial of confirmation has not been issued by the court.
Such receiver has all the powers and authority of a conservator plus the power
to liquidate, and has such other powers and authority as may be expressed in
the order of the court. If the [administrator,]commissioner, or his deputy, or examiner is
appointed receiver, he shall receive no additional compensation, but if another
person is appointed, then the compensation of the receiver, as determined by
the court, must be paid from the assets of the association.

2. If the association is an institution
insured by the Federal Savings and Loan Insurance Corporation, the Federal
Savings and Loan Insurance Corporation must be tendered appointment as receiver
or coreceiver. If it accepts such appointment, it may, nevertheless, make loans
on the security of or purchase at public or private sale any part or all of the
assets of the association of which it is receiver or coreceiver, if the loan or
purchase is approved by [such]the court.

3. The procedure in such receivership
action must be in all other respects in accordance with the practice in such
court, including all rights of appeal and review. The directors, officers and
attorneys of an association in office at the time of the initiation of any
proceeding under this section or under NRS 673.495 are expressly authorized to
contest any such proceeding and must be reimbursed for reasonable expenses and
attorney fees by the association or from its assets. Any court having any such
proceeding before it shall allow and order paid reasonable expenses and
attorney fees for such directors, officers and attorneys.

Sec. 289. NRS 673.515 is
hereby amended to read as follows:

673.515 An appeal from a judgment
enjoining the [administrator]commissioner from further proceedings and directing him
to surrender the business, property and assets to the association does not operate
as a stay of the judgment, unless the trial court in its discretion so orders.
If an appeal from the judgment is taken by the [administrator]commissioner no bond need be given. If the
judgment dismisses the action an appeal therefrom does not operate as a stay of
the judgment but the court rendering such judgment may, in its discretion,
enjoin the [administrator,]commissioner, pending the appeal, from further
proceedings and direct him, pending the appeal, to surrender such business,
property and assets to the association, if a bond is given in an amount not
less than 10 percent of the cash on hand or on deposit.

Sec. 290. NRS 673.525 is
hereby amended to read as follows:

673.525 Whenever the [administrator]commissioner
demands possession of the property, business and assets of any association,
pursuant to NRS 673.485 to 673.577, inclusive, the refusal of any officer,
agent, employee or director of such association to comply with the demand is a
misdemeanor.

Sec. 291. NRS 673.535 is
hereby amended to read as follows:

673.535 If the demand of the [administrator]commissioner
for the possession of the property, business and assets is not complied with
within 24 hours after service of the demand, the [administrator]commissioner may call to his assistance the
sheriff of the county in which the principal place of business
of [such] an association is located, by giving the sheriff written demand.

business of [such]an association is located, by giving the sheriff
written demand. The sheriff shall enforce the demands of the [administrator.]commissioner.

Sec. 292. NRS 673.545 is
hereby amended to read as follows:

673.545 When the [administrator]commissioner takes possession of the property,
business and assets of any association, the president and secretary of [such]an
association shall make a schedule of all its property, assets and collateral
held by it as security for loans and make an oath that such schedule sets forth
all such property, assets and collateral. The president and secretary shall
deliver the schedule, and the possession of all property, assets and collateral
not previously delivered to the [administrator.
The administrator]commissioner. The
commissioner may at any time examine under oath any president,
secretary, officer, director, agent or employee of the association, to
determine whether or not all [such]the property, assets or collateral have been
transferred and delivered into his possession.

Sec. 293. NRS 673.555 is
hereby amended to read as follows:

673.555 The [administrator]commissioner may issue subpenas and require the
attendance of parties for examination.

Sec. 294. NRS 673.565 is
hereby amended to read as follows:

673.565 When the [administrator]commissioner takes possession of the business,
property and assets of an association, he may appoint a custodian. The [administrator]commissioner
may require a good and sufficient bond from the custodian and place him in
charge as his representative.

Sec. 295. NRS 673.575 is
hereby amended to read as follows:

673.575 When the [administrator]commissioner takes possession of the property,
business and assets of an association, he may collect all money due to such
association and give receipt therefor. The [administrator]commissioner may do such other acts as are
necessary or expedient to collect, conserve or protect the associations
business, property and assets.

Sec. 296. NRS 673.576 is
hereby amended to read as follows:

673.576 If the [administrator]commissioner is in possession of the business,
property and assets of an association, whether or not he is liquidating the
affairs of [such]the association, the [administrator]commissioner may:

1. Pay and discharge any secured claims
against the association. No secured claim may be paid in an amount larger than
the value of the security at the time of payment.

2. Pay administrative or current expenses
incurred [prior to]before the taking of possession which are necessary or
convenient to the orderly or economic liquidation or preservation of the
assets, and pay all wages or salaries, in amounts not exceeding such amounts as
are normally paid to officers and employees. No salary increases may be
proposed or consented to by the [administrator,]commissioner, conservator or receiver. The number
of staff members which are required or needed for the operation of the
association must be determined by the [administrator.]commissioner.

3. Disaffirm any executory contracts,
including leases, to which the association is a party, and disaffirm any
partially executed contracts, including leases, to the extent that they remain
executory. The disaffirmance must be made within 6 months after obtaining
knowledge of the existence of the contract or lease.

Sec. 297. NRS 673.577 is
hereby amended to read as follows:

673.577 Claims for damages resulting from
the disaffirmance of an executory contract or lease by the [administrator]commissioner
may be filed and allowed. No claim of a landlord for damages resulting from the
disaffirmance of an unexpired lease of real property or under any covenant of [such]the
lease may be allowed in an amount exceeding the rent reserved by the lease,
without acceleration, for the year succeeding the date of the surrender of the
premises plus the amount of any unpaid accrued rent without acceleration. Any
such claim must be filed within 30 days of the date of [such]the disaffirmance.

Sec. 298. NRS 673.580 is
hereby amended to read as follows:

673.580 1. The [administrator]commissioner
may, if he takes possession of any association whose savings accounts are to
any extent insured by the Federal Savings and Loan Insurance Corporation, tender
to the Federal Savings and Loan Insurance Corporation the appointment as
statutory liquidator of the association. If he does not make a tender as sole
statutory liquidator, he shall tender to the Federal Savings and Loan Insurance
Corporation the appointment as statutory coliquidator to act jointly with the [administrator.]commissioner.
The coliquidatorship shall not be for more than 1 year from the date of tender,
at the expiration of which time the [administrator]commissioner shall become the sole liquidator
except as otherwise provided by this section. The [administrator]commissioner shall tender to the Federal Savings
and Loan Insurance Corporation the appointment as sole statutory liquidator of
the association whenever the corporation has become subrogated to the rights of
90 percent of the liability of the association on savings accounts. If the
Federal Savings and Loan Insurance Corporation becomes subrogated as to all the
savings accounts in the association, it may then exercise all the powers and
privileges conferred upon it by this chapter without court approval.

2. If the Federal Savings and Loan
Insurance Corporation accepts the appointment as sole liquidator it possesses
all the powers and privileges of the [administrator]commissioner as statutory liquidator of a
possessed savings and loan association and is subject to all duties of the [administrator]commissioner
as sole liquidator, except insofar as the powers and privileges or duties are
in conflict with federal laws, and except as otherwise provided in this
chapter, unless the association resumes business pursuant to the provisions of
this chapter. If the Federal Savings and Loan Insurance Corporation accepts the
appointment as coliquidator, it possesses [such]all the powers and privileges jointly with the [administrator]commissioner
and is subject to the jointly with the [administrator.]commissioner.

3. If the Federal Savings and Loan
Insurance Corporation accepts the appointment as coliquidator or liquidator, it
shall file its acceptance with the [administrator]commissioner and the clerk of the district court.
The corporation may act without bond. Upon filing its acceptance of appointment
as sole liquidator, the possession of and title to all the assets, business and
property of the association vests in the Federal Savings and Loan Insurance
Corporation without the execution of any conveyance, assignment, transfer or
endorsement. Upon filing its acceptance of appointment as coliquidator, the
possession and title vests in the [administrator]commissioner and the corporation jointly. If the
Federal Savings and Loan Insurance Corporation does not qualify as sole
liquidator at or before the time provided for the expiration of the
coliquidatorship, the corporation must be wholly divested of the joint title
and possession, and the sole title and possession vests in the [administrator.]commissioner.
The vesting of title and possession of the property of the association does not
render the property subject to any claims by the federal corporation, except
those which are encumbered by it with respect to the association and its
property. Whether or not it serves as liquidator or coliquidator, the
corporation may make loans on the security of or may purchase with the approval
of the court, except as otherwise provided in this chapter, all or any part of
the assets of any association, the savings accounts of which are to any extent
insured by it. In the event of a purchase, the corporation shall pay a
reasonable price.

4. Whether or not the Federal Savings and
Loan Insurance Corporation serves as liquidator, whenever it pays or makes
available for payment the savings accounts of any association in liquidation
which are insured by it, it is subrogated upon the surrender and transfer to it
of the savings accounts. The surrender and transfer do not affect any right
which the transferor has in any savings accounts which are not paid or made
available for payment or any right to participate in the distribution of the
net proceeds remaining from the disposition of the assets of the association.
The rights of the investors and creditors of the association must be determined
in accordance with the applicable provisions of the laws of this state.

Sec. 299. NRS 673.590 is
hereby amended to read as follows:

673.590 1. Whenever, in the
case of any association which has issued common or preferred stock, the [administrator]commissioner
or the Federal Savings and Loan Insurance Corporation has fully liquidated all
claims other than claims of the stockholders, and has made due provision for
all known or unclaimed liabilities, excepting claims of stockholders, and has
paid all expenses of liquidation, the [administrator]commissioner shall call a meeting of the
stockholders of the savings and loan association.

2. Notice of the meeting must be given
by:

(a) Five publications in a 30-day period in one
or more newspapers published in the county in which the principal office of the
association is located; and

3. At the meeting the [administrator]commissioner
shall deliver to the stockholders all the property and effects of the
association remaining in his possession except its records, which must be
retained by him as part of the records of his office. Upon transfer and
delivery he is discharged from any further liability to the association or its
creditors, and thereafter the association is in the same position as though it
had never been authorized to transact a savings and loan business.

Sec.300.NRS 673.597
is hereby amended to read as follows:

673.597 1. If any
association, company or corporation organized or incorporated under the laws of
any governing body other than the State of Nevada is doing business in this
state under the provisions of this chapter, and the laws of [such]the other
governing body conflict with any of the provisions of this chapter, the
provisions of the laws of this governing body prevail as to each[such]
conflict.

2. Whenever any [such]
foreign organization follows a course or performs any act which is forbidden to
any domestic organization under the terms of this chapter, it shall report to
the [administrator]commissioner all ofthe
facts relating thereto.

Sec.301. NRS 673.620
is hereby amended to read as follows:

673.620 1. At a meeting of
the stockholders held as provided in NRS 673.610, the stockholders may, by the
affirmative vote of the majority of the stockholders present, in person or by
proxy, declare by resolution the determination to convert the state company,
association or corporation into a federal savings and loan association.

2. A copy of the minutes of [such]the meeting,
verified by the affidavit of the president or vice president and the secretary
of the meeting, must be filed in the office of the [administrator]commissioner within 10 days after the date of the
meeting. The sworn copy of the proceedings of the meeting, when so filed, is
presumptive evidence of the holding and the action of the meeting.

Sec. 302. NRS 673.630
is hereby amended to read as follows:

673.630 1. After the holding
of the meeting of stockholders, the state company, association or corporation
shall take such action, in the manner prescribed or authorized by the laws of
the United States or the rules and regulations promulgated pursuant thereto, as
shall make it a federal savings and loan association, and there shall thereupon
be filed in the office of the [administrator]commissioner a copy of the charter of
authorization issued to the association by the Federal Home Loan Bank Board or
a certificate showing the organization of the association as a federal savings
and loan association, certified by the Federal Home Loan Bank Board. Upon [such] filing with the [administrator,]commissioner,
the association ceases to be a state savings and loan association, but retains
all rights, privileges and exemptions of a domestic association of the same
kind and character.

2. A fee of $20 must accompany the copy
of the charter of authorization.

3. Federal associations so converted and
their members are subject to the same form of taxation and on the same basis as
state associations and their stockholders.

673.670 Copies of the minutes of the
proceedings of [such]the meeting, verified by the affidavit of the president
or vice president and the secretary or an assistant secretary, must be filed in
the office of the [administrator]commissioner and, in duplicate, with the Federal Home
Loan Bank of which the association is a member, within 10 days after [such]the meeting.

Sec.304.NRS 673.690
is hereby amended to read as follows:

673.690 1. After the
meeting, the federal association shall take such action in the manner
prescribed and authorized by the laws of this state as shall make it a savings
and loan association of this state, and the directors elected at the meeting
shall file such documents and follow such procedures as are required by the
laws of this state in the case of the original incorporation of a savings and
loan association.

2. A savings and loan association
incorporated by conversion from a federal savings and loan association shall
not be required to comply with any of the provisions of law or any regulation
adopted by the [administrator]commissioner relating to the minimum amounts of capital
required to the subscribed in connection with the original incorporation of a
savings and loan association under the laws of this state.

Sec.305.NRS 675.020
is hereby amended to read as follows:

675.020 As used in this chapter, unless
the context otherwise requires:

2.] Amount
of cash advance means the amount of cash or its equivalent actually received
by a borrower or paid out at his direction or on his behalf.

[3.]2. Amount of loan obligation means the amount
of cash advance plus the aggregate of charges added thereto pursuant to
authority of this chapter.

3. Commissioner
means the commissioner of financial institutions.

4. Community means a contiguous area of
the same economic unit or metropolitan area as determined by the [administrator,]commissioner,
and may include all or part of a city or several towns or cities.

5. License means a license, issued
under the authority of this chapter, to make loans in accordance with the
provisions of this chapter, at a single place of business.

6. Licensee means a person to whom one
or more licenses have been issued.

Sec.306.NRS 675.060
is hereby amended to read as follows:

675.060 1. No person may
engage in the business of lending without first having obtained a license from
the [administrator.]commissioner.

2. For the purpose of this section, a
person engages in the business of lending if he solicits loans in this state
and, in connection therewith, makes loans to persons in this state, unless
these are isolated, incidental or occasional transactions.

Sec.307.NRS 675.090
is hereby amended to read as follows:

675.090 1. Application for a
license must be in writing, under oath, and in the form prescribed by the [administrator.]commissioner.

(b) Contain such further relevant information as
the [administrator]commissioner may require, including the names and
addresses of the partners, officers, directors or trustees, and of such of the
principal owners or members as will provide the basis for the investigations
and findings contemplated by NRS 675.110 and 675.120.

Sec.308.NRS 675.100
is hereby amended to read as follows:

675.100 1. At the time of
making the application, the applicant shall pay to the [administrator]commissioner a nonrefundable fee of $500 for the
application and survey. The applicant shall also pay such additional expenses
incurred in the process of investigation as the [administrator]commissioner deems necessary. In addition, a fee
of not less than $100 nor more than $500, prorated on the basis of the
licensing year as provided by the [administrator,]commissioner, must be paid at the time of making
the application.

2. All money received by the [administrator]commissioner
pursuant to this section must be placed in the investigative fund created by
NRS 232.285.

Sec.309.NRS 675.110
is hereby amended to read as follows:

675.110 1. Upon the filing
of the application and the payment of the fees, the [administrator]commissioner shall investigate the facts
concerning the application and the requirements provided in NRS 675.120.

2. At least 20 days before entering the
order granting or denying the application, he shall mail a notice of the
receipt of the application to each licensee having a place of business in the
community where the applicant proposes to do business and he may mail such a
notice to such other persons, associations and institutions as he may see fit.

3. The [administrator]commissioner may hold a hearing on the
application at a time not less than 30 days from the date the application was
filed nor more than 60 days from that date. The hearing must be held in the
office of the [administrator]commissioner or such other place as he may designate.
Notice in writing of the hearing must be sent to the applicant and to any
licensee to which a notice of the application had been given and to such other
persons as the [administrator]commissioner may see fit, at least 10 days before the
date set for the hearing.

4. The [administrator]commissioner shall make his order granting or
denying the application within 10 days from the date of the closing of the
hearing, unless the period is extended by written agreement between the
applicant and the [administrator.]commissioner.

Sec.310.NRS 675.120
is hereby amended to read as follows:

675.120 If the [administrator]commissioner finds:

1. That the financial responsibility,
experience, character and general fitness of the applicant are such as to
command the confidence of the public and to warrant belief that the business
will be operated lawfully, honesty, fairly and efficiently, within the purposes
of this chapter;

2. That allowing the applicant to engage
in business will promote the convenience and advantage of the community in
which the licensed office is to be located; and

3. That the applicant, unless he will
function solely as a loan broker, has available for the operation of the
business at the specified location liquid assets of at least $50,000,

he shall thereupon enter an order granting the application,
and file his findings of fact together with the transcript of any hearing held
under this chapter, and forthwith issue and deliver a license to the applicant.

Sec.311. NRS 675.140
is hereby amended to read as follows:

675.140 On or before December 20 of each
year, each licensee shall pay to the [administrator]commissioner $500 for each license held by him as
a license fee for the succeeding calendar year.

Sec. 312. NRS 675.150
is hereby amended to read as follows:

675.150 1. If the [administrator]commissioner
finds that any applicant does not possess the requirements specified in this
chapter, he shall enter an order denying the application and forthwith notify
the applicant of the denial.

2. Within 10 days after the entry of such
an order, he shall file his findings and a summary of the evidence supporting
them and shall forthwith deliver a copy thereof to the applicant.

Sec. 313. NRS 675.170
is hereby amended to read as follows:

675.170 1. The [administrator]commissioner
may adopt regulations and make orders for the administration and enforcement of
this chapter, in addition hereto and not inconsistent herewith.

2. Every regulation must be promulgated
by an order, and any ruling, demand, requirement or similar administrative act
may be promulgated by an order.

3. Every order must be in writing, must
state its effective date and the date of its promulgation, and must be entered
in an indexed permanent book which is a public record.

4. A copy of every order promulgating a
regulation and of every other order containing a requirement of general
application must be mailed to each licensee at least 20 days before the
effective date thereof.

Sec.314.NRS 675.210
is hereby amended to read as follows:

675.210 Not more than one place of
business may be maintained under the same license. The [administrator]commissioner may issue additional licenses to the
same licensee for other business locations upon compliance with all the
provisions of this chapter governing issuance of a single license. Nothing
herein requires a license for any place of business devoted to accounting,
recordkeeping or administrative purposes only.

Sec.315.NRS 675.220
is hereby amended to read as follows:

675.220 1. No change in the
place of business of a licensee to a location outside of the original city or
town may be permitted under the same license.

2. When a licensee wishes to change his
place of business within the same city or town, he shall give written notice
thereof to the [administrator,]commissioner, who shall investigate the facts. If the [administrator]commissioner
finds:

(a) That allowing the licensee to engage in
business in the proposed location is not detrimental to the convenience and
advantage of the community; and

(b) That the proposed location is reasonably
accessible to borrowers under existing loan contracts,

he shall enter an order permitting the change and shall
amend the license accordingly.

3. If the [administrator]commissioner does not so find he shall enter an
order denying the licensee such permission in the manner specified in and
subject to the provisions of NRS 675.150.

Sec.316.NRS 675.230
is hereby amended to read as follows:

675.230 No licensee may conduct the
business of making loans under this chapter within any office, suite, room or
place of business in which any other business is solicited or engaged in,
except an insurance agency or notary public, or in association or conjunction
with any other business, unless authority to do so is given by the [administrator.]commissioner.

Sec.317.NRS 675.260
is hereby amended to read as follows:

675.260 1. Annually, on or
before April 15, each licensee shall file with the [administrator]commissioner a report of operations of the
licensed business for the preceding calendar year.

2. The report must be made under oath and
must be in the form and contain information prescribed by the [administrator.]commissioner.

3. If any person or affiliated group
holds more than one license in the state, it may file a composite annual
report.

Sec.318.NRS 675.380
is hereby amended to read as follows:

675.380 1. For the purpose
of discovering violations of this chapter or of securing information lawfully
required under this chapter, the [administrator]commissioner or his duly authorized representatives
may at any time investigate the business and examine the books, accounts,
papers and records used therein of:

(a) Any licensee;

(b) Any other person engaged in the business
described in NRS 675.060 or participating in such business as principal, agent,
broker or otherwise; and

(c) Any person who the [administrator]commissioner has reasonable cause to believe is
violating or is about to violate any provision of this chapter, whether or not
the person claims to be within the authority or beyond the scope of this
chapter.

2. For the purpose of examination the [administrator]commissioner
or his authorized representatives shall have and be given free access to the
offices and places of business, files, safes and vaults of such persons.

3. For the purposes of this section, any
person who advertises for, solicits or holds himself out as willing to make
loan transactions is presumed to be engaged in the business described in NRS
675.060.

Sec.319.NRS 675.390
is hereby amended to read as follows:

675.390 The [administrator]commissioner may require the attendance of any
person and examine him under oath relative to loans or business regulated by
this chapter or to the subject matter of any examination, investigation or
hearing, and may require the production of books, accounts, papers and records.

Sec.320.NRS 675.400
is hereby amended to read as follows:

675.400 1. At least once
each year, the [administrator]commissioner or his authorized representatives shall
make an examination of the place of business of each licensee and of the loans,
transactions, books, papers and records of the licensee so far as they pertain
to the business licensed under this chapter.

2. For each examination the [administrator]commissioner
shall charge and collect from the licensee a reasonable fee for each man-hour
expended in conducting the examination and preparing and typing the examination
report.

3. All money collected by the [administrator]commissioner
pursuant to subsection 2 must be deposited in the state general fund.

Sec.321. NRS 675.410
is hereby amended to read as follows:

675.410 If the [administrator]commissioner finds that probable cause for
revocation of any license exists and that enforcement of this chapter requires
immediate suspension of [such]a license pending investigation, he may, upon 5 days
written notice and a hearing, enter an order suspending [such]a license for a period not exceeding 20 days,
pending a hearing upon the revocation.

Sec. 322. NRS 675.420
is hereby amended to read as follows:

675.420 Any licensee may surrender any
license by delivering it to the [administrator]commissioner with written notice of its
surrender, but [such]a surrender does not affect his civil or criminal
liability for acts committed prior thereto.

Sec. 323. NRS 675.430
is hereby amended to read as follows:

675.430 1. Whenever the [administrator]commissioner
has reasonable cause to believe that any person is violating or is threatening
to or intends to violate any provision of this chapter, he may, in addition to
all actions provided for in this chapter and without prejudice thereto, enter
an order requiring [such]a person to desist or to refrain from such violation.

2. An action may be brought on the
relation of the attorney general and the [administrator]commissioner to enjoin [such]a person from engaging in or continuing [such]a violation
or from doing any act or acts in furtherance thereof. In any such action, an
order or judgment may be entered awarding [such]a preliminary or final injunction as may be
deemed proper.

3. In addition to all other means
provided by law for the enforcement of a restraining order or injunction, the
court in which [such]an action is brought may impound,
and appoint a receiver for, the property and business of the defendant,
including books, papers, documents and records pertaining thereto, or so much
thereof as the count may deem reasonably necessary to prevent violations of
this chapter through or by means of the use of [such] property and business.

brought may impound, and appoint a receiver for, the
property and business of the defendant, including books, papers, documents and
records pertaining thereto, or so much thereof as the count may deem reasonably
necessary to prevent violations of this chapter through or by means of the use
of [such] property and business. [Such]A receiver,
when appointed and qualified, has such powers and duties as to custody,
collection, administration, winding up and liquidation of such property and
business as may from time to time be conferred upon him by the court.

Sec.324.NRS 675.440
is hereby amended to read as follows:

675.440 1. If the [administrator]commissioner
has reason to believe that grounds for revocation or suspension of a license
exist, he shall give 20 days written notice to the licensee stating the
contemplated action and, in general, the grounds therefor and set a date for a
hearing.

2. At the conclusion of [such]a hearing,
the [administrator]commissioner shall enter a written order either
dismissing the charges, or revoking the license, or suspending the license for
a period of not more than 60 days, which period must include any prior
temporary suspension. A copy of [such]the order must be sent by registered or certified
mail to the licensee.

3. The grounds for revocation or
suspension of a license are that:

(a) The licensee has failed to pay the annual
license fee;

(b) The licensee, either knowingly or without
any exercise of due care to prevent it, has violated any provision of this
chapter or any lawful regulation adopted under it;

(c) Any fact or condition exists which would
have justified the [administrator]commissioner in denying the licensees original
application for a license hereunder; or

(d) The applicant failed to open an office for
the conduct of the business authorized under this chapter within 120 days from
the date the license was issued, or has failed to remain open for the conduct
of such business for a period of 120 days without good cause therefor.

4. Any revocation or suspension shall
apply only to the license granted to a person for the particular office for
which grounds for revocation or suspension exist.

5. An order suspending or revoking a
license shall become effective 5 days after being entered unless the order
specifies otherwise or a stay is granted.

676.110 No person, firm, company or
corporation may engage in the business of debt adjusting except as provided in
and authorized by this chapter, and without first having obtained a license
from the [administrator.]commissioner.

676.120 1. Application for a
license must be in writing, under oath and in the form prescribed by the [administrator.]commissioner.

2. The application shall:

(a) Give the business name, location of the
office, names and addresses of all officers and directors, if a corporation or
association, and names and addresses of partners, if a copartnership.

(b) Be accompanied by a copy of the fictitious
name certificate or the articles of incorporation, where applicable.

(c) Contain such further relevant information as
the [administrator]commissioner may require.

Sec.328.NRS 676.130
is hereby amended to read as follows:

676.130 At the time of making the
application, the applicant shall:

1. Pay to the [administrator]commissioner a nonrefundable fee of $250 for the
application and survey. The applicant shall also pay such additional expenses
incurred in the process of investigation as the [administrator]commissioner deems necessary. In addition, a fee
of not less than $100 nor more than $200, prorated on the basis of the
licensing year as provided by the [administrator,]commissioner, must be paid at the time of making
the application. All money received by the [administrator]commissioner pursuant to this subsection must be
placed in the investigative fund created by NRS 232.285.

2. Furnish and maintain in effect a
satisfactory bond to the State of Nevada, executed by an admitted surety
company approved by the [administrator]commissioner, in the amount of $10,000, or an
appropriate substitute pursuant to NRS 676.135, conditioned upon the faithful
accounting of all money collected upon accounts and entrusted to the licensee,
or its employees or agents.

3. Provide a blank copy of the debt-adjustment
contract which will be used by the licensee in its business.

Sec.329.NRS 676.135
is hereby amended to read as follows:

676.135 1. An applicant for
a license may deposit with any bank or trust company authorized to do business
in this state, with the permission of the [administrator,]commissioner, as a substitute for the surety bond
required by NRS 676.130:

(a) An obligation of a bank, savings and loan
association, thrift company or credit union licensed to do business in this
state;

(b) Bills, bonds, notes, debentures or other
obligations of the United States or any agency or instrumentality thereof, or
guaranteed by the United States; or

(c) Any obligation of this state or any city,
county, town, township, school district or other instrumentality of this state
or guaranteed by this state, in an aggregate amount, based upon principal
amount or market value, whichever is lower.

The deposit must be in a form approved by the [administrator.]commissioner.

2. The obligations of a bank, savings and
loan association, thrift company or credit union must be held to secure the
same obligation as would the surety bond. With the approval of the [administrator,]commissioner,
the depositor may substitute other suitable obligations for those deposited
which must be assigned to the State of Nevada and are negotiable only upon
approval by the [administrator.]commissioner.

3. Any interest or dividends earned on
the deposit accrue to the account of the depositor.

4. The deposit must be an amount at least
equal to the required surety bond and must state that the amount may not be
withdrawn except by direct and sole order of the [administrator.]commissioner.

Sec.330.NRS 676.140
is hereby amended to read as follows:

676.140 Upon the filing of the
application and the payment of fees, the [administrator]commissioner shall investigate the facts
concerning the application and the requirements provided for in NRS 676.150.

Sec.331. NRS 676.150
is hereby amended to read as follows:

676.150 If the [administrator]commissioner finds that:

1. The financial responsibility,
experience, character and general fitness of the applicant and of the
associates, directors or officers thereof are such as to command the confidence
of the public and to warrant belief that the business will be operated
lawfully, honesty, fairy and efficiently, within the purposes of this chapter;
and

2. Allowing the applicant to engage in
business will promote the convenience and advantage of the community in which
the licensed office is to be located,

he shall issue and deliver a license to the applicant.

Sec. 332. NRS 676.160
is hereby amended to read as follows:

676.160 1. On or before
December 1 of each year, each licensee may apply to the [administrator]commissioner for a renewal of its license.

2. The application must be on the form
prescribed by the [administrator]commissioner and must be accompanied by a fee of $200
and a bond, as in the case of the original application.

3. Each license, as renewed, remains in
force until surrendered, suspended or revoked as provided in this chapter.

Sec. 333. NRS 676.200
is hereby amended to read as follows:

676.200 Not more than one office may be maintained
under the same license. The [administrator]commissioner may issue additional licenses to the
same licensee for other offices upon compliance with the provisions of this
chapter governing issuance of a single license.

Sec.334.NRS 676.205
is hereby amended to read as follows:

676.205 1. A licensee shall
immediately notify the [administrator]commissioner of any change in the ownership of 5
percent or more of the outstanding voting stock of the licensee.

2. An application must be submitted to
the [administrator,]commissioner, pursuant to NRS 676.120, by a person who
acquires:

(b) Any outstanding voting stock of a licensee
if the change will result in a change in the control of the licensee.

Except as provided in subsection 4, the [administrator]commissioner
shall conduct an investigation to determine whether the financial
responsibility, experience, character and general fitness of the applicant are
such as to command the confidence of the public and to warrant belief that the
business will be operated lawfully, honestly, fairly and efficiently, within
the purposes of this chapter. If the [administrator]commissioner denies the application, he may
forbid the applicant from participating in the business of the licensee.

3. The licensee with which the applicant
is affiliated shall pay such a portion of the cost of the investigation as the [administrator]commissioner
requires. All money received by the [administrator]commissioner pursuant to this subsection must be
placed in the investigative fund created by NRS 232.285.

4. A licensee may submit a written
request to the [administrator]commissioner to waive an investigation pursuant to
subsection 2. The [administrator]commissioner may grant a waiver if the applicant has undergone
a similar investigation by a state or federal agency in connection with the
licensing of or his employment with a financial institution.

Sec.335.NRS 676.210
is hereby amended to read as follows:

676.210 Any licensee may surrender any
license by delivering it to the [administrator]commissioner with written notice of its
surrender, but [such]a surrender does not affect any civil or criminal
liability for acts committed prior thereto.

Sec.336.NRS 676.220
is hereby amended to read as follows:

676.220 Each licensee shall:

1. Open and maintain a separate trust
account in a state bank or national bank doing business in this state. All
money received from debtors for the benefit of creditors must be deposited in,
and all payments to creditors must be disbursed from, this account.

2. Keep and use such books and accounting
records as are in accord with sound and accepted accounting practices.

3. Maintain a separate record or ledger
card for the account of each debtor, showing the amount of money received, from
and disbursed on behalf of each debtor.

4. Maintain a separate record, in a form
approved by the [administrator,]commissioner, or ledger card for each creditor,
identifying the particular debtor-source of money and showing the amount of
money disbursed in accordance with the appropriate debt-adjustment contract.

5. Preserve all [such]
books and accounting records for at least 7 years after making the final entry
therein.

Sec.337.NRS 676.230
is hereby amended to read as follows:

676.230 1. Annually, on or
before April 15, each licensee shall file with the [administrator]commissioner a report of operations of the
licensed business for the preceding calendar year.

2. [Such]A report must give information with respect to
the financial operations of the licensee.

3. [Such
reports]A report must be made
under oath and must be in the form prescribed by the [administrator.]commissioner.

Sec.338.NRS 676.260
is hereby amended to read as follows:

676.260 Each licensee shall:

1. Make remittances to creditors within
10 days after receipt of the monthly remittance from the debtor.

2. Furnish a written statement of account
to the debtor at least once every 90 days. If the licensee has been doing
business for more than 1 year, the [administrator]commissioner may waive the requirement of this
subsection as he shall determine.

3. Provide account information to the
debtor verbally when requested during normal business hours.

Sec.339.NRS 676.270
is hereby amended to read as follows:

676.270 1. For the purpose
of discovering violations of this chapter or of securing information lawfully
required under this chapter, the [administrator]commissioner or his authorized representative may
at any time and shall, at least once each year, investigate the business and
examine the books, accounts, papers and records of any licensee.

2. For the purpose of examination the [administrator]commissioner
or his authorized representatives must be allowed free access to the offices,
files, safes and vaults of such licensees.

3. For each examination the [administrator]commissioner
shall charge and collect from the licensee a reasonable fee for each man-hour
expended in conducting the examination and in preparing and typing the
examination report.

Sec.340.NRS 676.280
is hereby amended to read as follows:

676.280 1. The [administrator]commissioner
may require the attendance of any person and examine him under oath with regard
to the debt adjustment business regulated by this chapter or the subject matter
of any examination, investigation or hearing.

2. The [administrator]commissioner may require the production of books,
accounts, papers and records in aid of any examination, investigation or
hearing.

Sec.341. NRS 676.290
is hereby amended to read as follows:

676.290 1. The [administrator]commissioner
may, pursuant to the procedure provided in this chapter, deny, suspend or
revoke any license for which application has been made or which has been issued
under the provisions of this chapter if he finds, as to the licensee, its
associates, directors or officers, grounds for [such]
action.

2. Any one of the following grounds may
provide the requisite grounds for [such]
denial, suspension or revocation:

(a) Conviction of a felony or of a misdemeanor involving
moral turpitude.

(b) Violation of any of the provisions of this
chapter or regulations of the [administrator.]commissioner.

(e) Insolvency, filing in bankruptcy,
receivership or assigning for the benefit of creditors by any licensee or
applicant for a license under this chapter.

Sec. 342. NRS 676.300
is hereby amended to read as follows:

676.300 If the [administrator]commissioner finds that any one of the requisite
grounds for denial, suspension or revocation of the license exists and that the
enforcement of this chapter requires the immediate suspension of [such]a license,
he may, upon 5 days written notice and a hearing, enter an order suspending [such]a license
for a period not exceeding 20 days, pending the holding of a hearing as
prescribed in NRS 676.310.

Sec. 343. NRS 676.310
is hereby amended to read as follows:

676.310 1. The [administrator]commissioner
may, after notice and hearing, enter an order:

(a) Denying a license to any applicant who fails
to establish, at [such]the hearing, its financial responsibility, experience,
character and general fitness to engage in debt adjusting; or

(b) Revoking the license of a licensee who fails
to overcome, at [such]the hearing, the probable cause for [such]the revocation
found by the [administrator.]commissioner.

2. The denial, suspension or revocation
of a license, as provided in this chapter, does not impair nor affect the
obligation under any lawful debt-adjusting contract.

Sec.344.Chapter
677 of NRS is hereby amended by adding thereto a new section to read as
follows:

Commissioner means the
commissioner of financial institutions.

Sec.345.NRS 677.020
is hereby amended to read as follows:

677.020 As used in this chapter, unless
the context otherwise requires, the words and terms defined in NRS [677.025]677.030 to
677.140, inclusive, and section 344 of this act, have
the meanings ascribed to them in those sections.

Sec.346.NRS 677.070
is hereby amended to read as follows:

677.070 Community means a contiguous
area of the same economic unit or metropolitan area, as determined by the[administrator,]commissioner, and may include all or part of a
city or several towns or cities.

Sec.347.NRS 677.150
is hereby amended to read as follows:

677.150 When authorized by the [administrator,]commissioner,
as provided in this chapter, a corporation may be formed by three or more
persons in accordance with the laws of this state to engage in business under
this chapter.

Sec.348.NRS 677.160
is hereby amended to read as follows:

677.160 1. The request for
authority to engage in business under this chapter must be set forth in an
application in such form and containing such information as the [administrator]commissioner
may require.

(a) For filing an original application, $1,000
for the principal office and $150 for each branch office. The applicant shall
also pay such additional expenses incurred in the process of investigation as
the [administrator]commissioner deems necessary. All money received by the
[administrator]commissioner pursuant to this paragraph must be placed
in the investigative fund created by NRS 232.285.

(b) If the license is approved for issuance,
$500 for the principal office and $100 for each branch office before issuance.

Sec.349.NRS 677.170
is hereby amended to read as follows:

677.170 A licensee which proposes to
accept deposits shall file with the [administrator]commissioner a fidelity bond providing fidelity
coverage on each officer, director and employee of at least $100,000. The
fidelity bond may be either a bankers blanket bond or a finance companys
blanket bond, but must be written by an insurer who has been approved by the [administrator.]commissioner.

Sec.350.NRS 677.175
is hereby amended to read as follows:

677.175 If the [administrator]commissioner finds that a bond filed pursuant to
NRS 677.170 is not sufficient to protect the interests of the public, he shall
require the applicant to deposit an additional bond.

Sec.351. NRS 677.180
is hereby amended to read as follows:

677.180 Upon the filing of an
application, the [administrator]commissioner shall make or cause to be made a careful
investigation and examination relative to the following:

1. Character, reputation and financial
standing of the organizers or incorporators.

2. The need for a thrift company or an
additional thrift company, as the case may be, in the community where the
proposed licensee is to be located, giving particular consideration to the
adequacy of existing thrift company services and the need for additional
services of this kind in the community.

3. The ability of the community to
support the proposed licensee, giving consideration to:

(a) The competition offered by existing licensees;

(b) Whether a thrift company has previously
operated in the community; and

(c) The opportunities for profitable employment
of the licensees [funds]money as indicated by the average demand for credit,
the number of potential investors, the volume of transactions where the
services of a thrift company would be appropriate, and the business and
industries of the community with particular regard to their stability,
diversification and size.

4. The character, banking, industrial
loan, finance or thrift company or other experience and business qualifications
of the proposed officers and managers of the licensee.

5. The character, financial
responsibility, business experience and standing of the proposed stockholders
and directors.

6. [Such]Any other facts and circumstances bearing on the
proposed licensee as in the opinion of the [administrator]commissioner may be relevant.

Sec. 352. NRS 677.190
is hereby amended to read as follows:

677.190 The [administrator]commissioner shall not approve the application
unless he ascertains to his satisfaction:

1. That the public convenience and
advantage will be promoted by the establishment of the proposed corporation.

2. That the corporation is being formed
for no other purpose than the legitimate objectives contemplated by this
chapter.

3. That the proposed capital structure is
adequate.

4. That the financial responsibility,
character and general fitness of the proposed officers, directors, shareholders
and other investors are such as to command the confidence of the community and
to warrant belief that the business will be operated honesty and fairly within
the purpose of this chapter, and that the proposed officers and directors have
sufficient banking, industrial loan or other experience, ability and standing
to afford reasonable promise of successful operation.

5. That the applicant has complied with
all the applicable provisions of this chapter.

Sec. 353. NRS 677.220
is hereby amended to read as follows:

677.220 If the [administrator]commissioner approves an application for
authority to form a corporation to engage in business under this chapter, he
shall issue a certificate in duplicate authorizing the organization of the
corporation and the operation of a thrift company, specifying the date on which
and the conditions under which its place of business may be opened, including
the place where it will be located. The [administrator]commissioner shall deliver one copy to the
applicant and retain the other copy.

Sec.354.NRS 677.230
is hereby amended to read as follows:

677.230 The [administrator]commissioner may establish the basis upon which
reasonable and adequate reserves must be created and maintained, which must be
no less than 3 percent of the deposits, in cash and due from federally insured
financial institutions in this state or any Federal Reserve Bank, and 5 percent
of the deposits, in United States treasury bills or notes, short-term
obligations of the federal or state government or money deposited in federally
insured financial institutions in this state or any Federal Reserve Bank. For
the purposes of this section, short-term means having a maturity of 2 years
or less.

Sec.355.NRS 677.240
is hereby amended to read as follows:

677.240 If a licensee desires to change
its place of business to a street address other than that designated in its
authorization, it shall give written notice to the [administrator]commissioner who shall issue his written
authorization of [such]the change, if the [administrator]commissioner finds such change of place of
business would not justify a negative finding.

677.241 Subject to the prior approval of
the [administrator,]commissioner, a licensee may, by a majority vote of its
board of directors:

1. Enter into a contract, incur an
obligation and perform other acts necessary to obtain a membership or other
benefit that is available to a thrift company or its customers, stockholders,
conservators, receivers or liquidators pursuant to the provisions of:

(a) The Federal Deposit Insurance Act (12 U.S.C.
§§ 1811 et seq.);

(b) The National Housing Act (12 U.S.C. §§ 1701
to 1743, inclusive); or

(c) A contract of insurance obtained by a
licensee pursuant to paragraph (c) of subsection 1 of NRS 677.247.

2. Subscribe for and acquire any stock,
debentures, bonds or other types of securities of the Federal Deposit Insurance
Corporation.

Sec.357.NRS 677.243
is hereby amended to read as follows:

677.243 1. Each licensee
must maintain a record that includes for each employee:

(a) His full name;

(b) The address of each place at which he has
resided during the previous 10 years;

(c) The name and address of each employer during
the previous 10 years;

(d) A recent photograph of the employee
measuring 3 by 5 inches; and

(e) Any alias used by the employee.

2. The information contained in this
record must be provided to the [administrator]commissioner upon his request but is otherwise
confidential.

Sec.358.NRS 677.245
is hereby amended to read as follows:

677.245 1. Unless the
licensee has received a written waiver from the [administrator,]commissioner, the total amount of money that it
has advanced or committed for the real property that it has developed or
constructed may not exceed twice the sum of its capital, surplus, undivided
profits, reserve for loans, reserve for federal insurance and any other
reserves specified by the [administrator.]commissioner.

2. If a licensee acquires title to any
real property pursuant to the provisions of subsection 1 of NRS 677.630, the
deed or other document representing the transaction must be recorded
immediately.

3. An account must be established for the
acquired property with a separate subsidiary ledger or other appropriate
record. The amount carried in the account must be the sum of the unpaid
principal balance of any loan made by the licensee that was secured by the
foreclosed property plus the cost of the foreclosure less any advance payments
held in the account for loans in progress at the time of acquisition, together
with:

(a) Any amount paid after acquisition for taxes
on the property that accrued before the acquisition;

(b) Assessments that are due or delinquent at
the time of acquisition;

(c) Any other costs of acquisition; and

(d) The cost of insurance on the property.

4. The subsidiary ledger or other
appropriate record must indicate as to each property:

(b) The insurance of deposits provided pursuant
to the provisions of the National Housing Act (12 U.S.C §§ 1701 to 1743,
inclusive); or

(c) A contract for the insurance of deposits
which is issued by a private insurer approved by the [administrator]commissioner and the commissioner of insurance
pursuant to NRS 677.249. Such a contract must be approved by the [administrator]commissioner
and the [commissioner.]commissioner of insurance. The issuance of [such] a contract of insurance is not
transacting insurance for the purposes of Title 57 of NRS.

2. An applicant must first attempt to
obtain the insurance of deposits provided pursuant to the provisions of the
Federal Deposit Insurance Act (12 U.S.C. §§ 1811 et seq.) or the National
Housing Act (12 U.S.C. §§ 1701 to 1743, inclusive) before obtaining a contract
of insurance. The [administrator]commissioner and the commissioner of insurance shall not approve a contract of insurance
for [such] an applicant unless they
are satisfied that the reasons why the applicant has not obtained insurance
under those provisions do not indicate that the protection intended to be
afforded to the depositors by this act will be substantially impaired.

3. The [administrator]commissioner and the commissioner of insurance shall not approve a contract of insurance
unless the protection afforded thereby to the depositors is substantially
equivalent to the protection afforded by the Federal Deposit Insurance Corporation
to the depositors of the accounts that it insures.

Sec.360.NRS 677.249
is hereby amended to read as follows:

677.249 1. In determining
whether a private insurer is acceptable to issue a contract for the insurance
of deposits, the [administrator]commissioner and the commissioner of insurance must
consider:

(a) The value of the insurers capital.

(b) The ratio of the insurers assets, including
reinsurance, which are readily available to cover any losses incurred by
depositors, to its insured deposits. This ratio must be adequate to reimburse
depositors for any losses which they may incur and may not be less than the
ratio maintained by the Federal Deposit Insurance Corporation or the Federal
Savings and Loan Insurance Corporation, whichever is greater.

(c) The qualifications of the directors,
officers and managers of the insurance company.

(d) The insurers articles of incorporation and
its bylaws and all amendments thereto.

(f) The form of all insurance contracts entered
into by the insurer, including contracts for reinsurance.

(g) The insurers requirements for premiums or
deposits.

(h) The insurers policies for the management of
risk.

(i) Such other considerations as the [administrator]commissioner
may provide by regulation which are necessary to carry out the provisions of
NRS 677.241 to 677.249, inclusive.

2. After a private insurer obtains the
approval of the [administrator]commissioner and the [commissioner,
the administrator,]commissioner of
insurance, the commissioner, after consultation with the commissioner [,] of insurance, may, for cause, require
the insurer to establish and maintain for such a time as the [administrator]commissioner
may require, a reserve, in cash or United States treasury bills or notes, in an
amount fixed by the [administrator.]commissioner. If required, the reserve must be
kept in an account approved by the [administrator]commissioner in a federally insured financial
institution located in this state.

Sec.361. NRS 677.250
is hereby amended to read as follows:

677.250 When authorized by the [administrator]commissioner
as provided in this chapter, a licensee, pursuant to a resolution of its board
of directors, may establish and maintain one or more branch offices within the
state.

Sec. 362. NRS 677.270
is hereby amended to read as follows:

677.270 1. The [administrator]commissioner
shall not approve an application for a branch office until he has ascertained
to his satisfaction that the facts set forth in the application are true and:

(a) That the public convenience and advantage
will be promoted by the establishment of the proposed branch office.

(b) That the licensee has the capital required
by this chapter.

2. The [administrator]commissioner must give his approval or denial for
a branch application to the licensee within 45 days from the date of
application to open a branch office unless the [administrator]commissioner gives notice within the original
45-day period that he is extending the period for decision for a term not to
exceed an additional 45 days.

Sec. 363. NRS 677.290
is hereby amended to read as follows:

677.290 The failure of a licensee to open
and operate a branch office within 6 months after the [administrator]commissioner approves the application therefor
automatically terminates the right of the licensee to open the branch office.

Sec.364.NRS 677.300
is hereby amended to read as follows:

677.300 When authorized by the [administrator,]commissioner,
a licensee may change the location of a branch office from one location to
another. The [administrator]commissioner must give his approval or denial to the
licensee within 25 days from the date of application for a change in branch
location unless the [administrator]commissioner gives notice within the original
25-day period that he is extending the period for decision for a term not to
exceed an additional 25 days. Every licensee shall keep posted in a conspicuous place in each branch office the certificate
issued by the [administrator] commissioner permitting the operating of the
branch office.

a conspicuous place in each branch office the certificate
issued by the [administrator]commissioner permitting the operating of the branch
office.

Sec.365.NRS 677.320
is hereby amended to read as follows:

677.320 1. With the prior
written approval of the [administrator,]commissioner, a licensee may close or discontinue
the operation of any branch office if public notice thereof is given in such manner
as the [administrator]commissioner directs at least 30 days before the date
of closing or discontinuance.

2. After a branch office has been closed
or discontinued it may not be reopened without the approval of the [administrator.]commissioner.

Sec.366.NRS 677.330
is hereby amended to read as follows:

677.330 1. The [administrator]commissioner
may authorize a licensee to operate a mobile office.

2. A mobile office must serve its
designated area at least once each 30 days. Each mobile office must be licensed
as a branch office.

3. Each application for authority to
operate a mobile office must specify the permanent office of the licensee,
either its main office or one of its branches, at which the records of the
mobile office will be kept.

Sec.367.NRS 677.360
is hereby amended to read as follows:

677.360 On or before December 20 of each
year, each licensee shall pay to the [administrator]commissioner the sum of $500 for each license
held by him as a license fee for the succeeding calendar year.

Sec.368.NRS 677.370
is hereby amended to read as follows:

677.370 1. Each licensee
shall conspicuously post each license in the place of business to which it
pertains.

2. No license is transferable or
assignable without the permission of the [administrator.]commissioner.

Sec.369.NRS 677.380
is hereby amended to read as follows:

677.380 1. The [administrator]commissioner
may adopt regulations and make orders for the administration and enforcement of
this chapter, in addition to and not inconsistent with this chapter.

2. Any ruling, demand, requirement or
similar administrative act may be promulgated by an order.

3. Every order must be in writing, must
state its effective date and the date of its promulgation, and must be entered
in an indexed permanent book which is a public record.

4. A copy of every order containing a
requirement of general application must be mailed to each licensee at least 20
days before the effective date thereof.

Sec.370.NRS 677.400
is hereby amended to read as follows:

677.400 1. Annually, on or
before May 15, unless the [administrator]commissioner grants a written extension, each
licensee shall file with the [administrator]commissioner a report of operations of the
licensed business for the preceding calendar year.

2. The report must give information with respect
to the financial condition of the licensee and include balance sheets at the
beginning and end of the year, statement of income and
expenses for the period, reconciliation of surplus or net worth with the
balance sheets, schedule of assets used and useful in the licensed business,
size of loans, analysis of charges, including monthly average number and amount
of loans outstanding, analysis of delinquent accounts, court actions undertaken
to effect collection, and any further statistical information reasonably
prescribed by the [administrator.]

of the year, statement of income and expenses for the
period, reconciliation of surplus or net worth with the balance sheets,
schedule of assets used and useful in the licensed business, size of loans,
analysis of charges, including monthly average number and amount of loans
outstanding, analysis of delinquent accounts, court actions undertaken to
effect collection, and any further statistical information reasonably prescribed
by the [administrator.]commissioner.

3. The report must be made under oath and
be in the form prescribed by the [administrator.]commissioner.

4. If any person or affiliated group
holds more than one license in the state, that person or group may file a composite
annual report, if a short form of report applicable to each licensed office
accompanies the report.

Sec.371. NRS 677.410
is hereby amended to read as follows:

677.410 1. The annual
reports and financial statements required by this chapter must be prepared in
accordance with generally accepted accounting principles and must be accompanied
by a report, certificate, or opinion of an independent certified public
accountant or independent public accountant, and must contain such relevant
information as the [administrator]commissioner may require. The audits must be conducted
in accordance with generally accepted auditing standards and the regulations of
the [administrator.]commissioner.

2. A licensee shall make other special
reports to the [administrator]commissioner as the [administrator]commissioner may from time to time require.

3. For good cause and upon written
request, the [administrator]commissioner may extend the time for compliance with
the provisions of this chapter.

4. If the report, certificate or opinion
of the independent accountant is in any way qualified, the [administrator]commissioner
may require the company to take such action as he deems appropriate to permit
an independent accountant to remove such qualification from the report,
certificate or opinion.

Sec. 372. NRS 677.420
is hereby amended to read as follows:

677.420 1. A licensee shall
immediately notify the [administrator]commissioner of any change in the ownership of 5
percent or more of the outstanding voting stock of the licensee.

2. An application for approval must be
submitted to the [administrator]commissioner by a person who acquires:

(a) At least 25 percent of a licensees
outstanding voting stock; or

(b) Any outstanding voting stock of a licensee
if the change will result in a change in the control of the licensee.

Except as provided in subsection 4, the [administrator]commissioner
shall conduct an investigation in accordance with NRS 677.180. If the [administrator]commissioner
denies the application, he may forbid the applicant from participating in the
business of the licensee.

3. The licensee with which the applicant
is affiliated shall pay such a portion of the cost of the investigation as the [administrator]commissioner
requires. All money received by the [administrator]commissioner pursuant to this subsection must be
placed in the investigative fund created by NRS 232.285.

4. A licensee may submit a written
request to the [administrator]commissioner to waive an investigation pursuant to
subsection 2. The [administrator]commissioner may grant a waiver if the applicant has undergone
a similar investigation by a state or federal agency in connection with the
licensing of or his employment with a financial institution.

Sec. 373. NRS 677.430
is hereby amended to read as follows:

677.430 1. At least once
each year, the [administrator]commissioner or his authorized representatives shall
make an examination of the place of business of each licensee and of the loans,
transactions, books, papers and records of such licensee so far as they pertain
to the business licensed under this chapter.

2. For each examination the [administrator]commissioner
shall charge and collect from the licensee a reasonable fee for each man-hour
expended in conducting the examination and preparing and typing the examination
report.

Sec.374.NRS 677.440
is hereby amended to read as follows:

677.440 1. For the purpose
of discovering violations of this chapter or of securing information lawfully
required under this chapter, the [administrator]commissioner or his authorized representatives
may at any time investigate the business and examine the books, accounts,
papers and records used therein of:

(a) Any licensee;

(b) Any other person engaged in the business
described in this chapter, participating in the business as a principal, agent,
broker or otherwise;

(c) Any person who the [administrator]commissioner has reasonable cause to believe is
violating or is about to violate any provision of this chapter, whether or not
that person claims to be within the authority or beyond the scope of this
chapter; and

(d) Any company which is a subsidiary of,
affiliated with or owned or controlled by a licensee.

2. For the purpose of examination, the [administrator]commissioner
or his authorized representatives have and must be given free access to the
offices and places of business, files, safes and vaults of the persons listed
in subsection 1.

Sec.375.NRS 677.450
is hereby amended to read as follows:

677.450 The [administrator]commissioner may require the attendance of any
person and may examine him under oath relative to loans or business regulated
by this chapter or the subject matter of any examination, investigation or
hearing, and may require the production of books, accounts, papers and records.

677.460 The [administrator]commissioner may provide by regulation or order
for the charging off of assets considered to be of little or no value.

Sec.377.NRS 677.470
is hereby amended to read as follows:

677.470 In addition to the annual fee
provided by this chapter, the [administrator]commissioner shall assess and collect from each
licensee the reasonable cost of auditing the books and records of [such]a licensee.

Sec.378.NRS 677.480
is hereby amended to read as follows:

677.480 If it appears to the [administrator]commissioner
any company is conducting business in an unsafe or injurious manner, he may by
written order direct the discontinuance of any [such]
unsafe or injurious practices.

Sec.379.NRS 677.490
is hereby amended to read as follows:

677.490 Any licensee may surrender any
license by delivering it to the [administrator]commissioner with written notice of its
surrender, but [such]a surrender does not affect his civil or criminal
liability for acts committed [prior to]before the surrender.

Sec.380.NRS 677.500
is hereby amended to read as follows:

677.500 If the [administrator]commissioner finds that probable cause for
revocation of any license exists and that enforcement of this chapter requires
immediate suspension of [such]a license pending investigation, he may, upon 5 days
written notice and without a hearing, enter an order suspending [such]a license
for a period not exceeding 20 days pending the holding of a hearing.

Sec.381. NRS 677.510
is hereby amended to read as follows:

677.510 1. If the [administrator]commissioner
has reason to believe that grounds for revocation or suspension of a license
exist, he shall give 20 days written notice to the licensee stating the
contemplated action and, in general, the grounds therefor and set a date for a
hearing.

2. At the conclusion of [such]a hearing,
the [administrator]commissioner shall enter a written order either
dismissing the charges, or revoking the license, or suspending the license for
a period of not more than 60 days, which period must include any prior
temporary suspension. A copy of such order must be sent by registered or
certified mail to the licensee.

3. The grounds for revocation or
suspension of a license are that:

(a) The licensee has failed to pay the annual
license fee;

(b) The licensee, either knowingly or without
any exercise of due care to prevent it, has violated any provision of this
chapter, or any lawful regulation promulgated under this chapter;

(c) Any fact or condition exists which would
have justified the [administrator]commissioner in denying the licensees original
application for a license hereunder; or

(d) The applicant failed to open an office for
the conduct of the business authorized under this chapter within 120 days from
the date the license was issued, or has failed to remain open for the conduct
of [such]the
business for a period of 120 days without good cause therefor.

4. Any revocation or suspension applies
only to the license granted to a person for the particular office for which
grounds for revocation or suspension exist.

5. An order suspending or revoking a
license becomes effective 5 days after being entered unless the order specifies
otherwise or a stay is granted.

Sec. 382. NRS 677.530
is hereby amended to read as follows:

677.530 1. Whenever the [administrator]commissioner
has reasonable cause to believe that any person is violating or is threatening
to or intends to violate any provision of this chapter, he may, in addition to
all actions provided for in this chapter and without prejudice thereto, enter
an order requiring [such]the person to desist or to refrain from such violation.

2. An action may be brought on the
relation of the attorney general and the [administrator]commissioner to enjoin [such]a person from engaging in or continuing [such]a violation
or from doing any act or acts in furtherance thereof. In any such action, an
order or judgment may be entered awarding such preliminary or final injunction
as may be deemed proper.

3. In addition to all other means
provided by law for the enforcement of a restraining order or injunction, the
court in which [such]an action is brought may impound, and appoint a
receiver for, the property and business of the defendant, including books, papers,
documents and records pertaining thereto, or so much thereof as the court deems
reasonably necessary to prevent violations of this chapter through or by means
of the use of [such]the property and business. Such receiver, when
appointed and qualified, has such powers and duties as to custody, collection,
administration, winding up and liquidation of such property and business as are
from time to time conferred upon him by the court.

Sec. 383. NRS 677.540
is hereby amended to read as follows:

677.540 Whenever it appears to the [administrator]commissioner
that:

1. The capital of any licensee is
impaired;

2. Any licensee has violated its articles
of incorporation or any law of this state;

3. Any licensee is conducting its
business in an unsafe or unauthorized manner;

4. Any licensee refuses to submit its
books, papers and affairs to the inspection of any examiner;

5. Any officer of any licensee refuses to
be examined upon oath touching the concerns of the licensee;

6. Any licensee has suspended payment of
its obligations;

7. Any licensee is in [such]a condition
that it is unsound or unsafe for it to transact business;

8. Any licensee neglects or refuses to
observe any order of the [administrator]commissioner made pursuant to this chapter unless
the enforcement of the order is restrained in a proceeding brought by the
licensee;

9. Any licensee has accepted deposits in
violation of the provisions of this chapter; or

10. Any fact or condition exists which,
if it had existed at the time of the original application for authority to
organize and establish a corporation to engage in business under this chapter
reasonably would have warranted the [administrator]commissioner in disapproving the application,

the [administrator]commissioner may forthwith take possession of the
property and business of the licensee and retain possession until it resumes
business or its affairs are finally liquidated as provided in this chapter. The
licensee, with the consent of the [administrator,]commissioner, may resume business upon such
conditions as he may prescribe.

Sec.384.NRS 677.545
is hereby amended to read as follows:

677.545 1. Except as limited
by subsection 2, if the [administrator]commissioner has taken possession of the property
and business of a corporation licensed under this chapter pursuant to NRS
677.540, or a receiver, other than the state, has been appointed for and taken
possession of the property and business of [such]
a corporation, the [administrator]commissioner may solicit offers from and authorize or
require the acquisition of the corporation by or its merger with another
institution or company in the following order of priority:

(a) A corporation which is licensed pursuant to
this chapter.

(b) Any other depository institution licensed
under the laws of this state or of the United States if its principal office is
located in this state, including institutions whose parent corporation has
offices or operations in other states.

(c) A bank, savings and loan association or
thrift company, or its parent corporation, licensed pursuant to the laws of the
United States or of another state, whose operations are principally conducted
within the states of Alaska, Arizona, Colorado, Hawaii, Idaho, Montana, New
Mexico, Oregon, Utah, Washington or Wyoming.

(d) A bank, savings and loan association or
thrift company, or its parent corporation, licensed pursuant to the laws of the
United States or of another state, whether or not its principal place of
business is in another state.

The [administrator]commissioner shall solicit written offers from
all eligible institutions, regardless of the order of priority established by
this subsection, and wait at least 30 days after solicitation before selecting
the institution to be approved.

2. The selection of an institution must
be made in accordance with the order of priority established in subsection 1
only if [such] a selection affords
the greatest financial recovery by the corporations depositors of all offers
received. The [administrator]commissioner may not accept any offer which affords the
corporations depositors a smaller financial recovery than they would receive
if the corporation were liquidated. If the [administrator]commissioner receives one or more acceptable
offers he may negotiate with the institutions submitting acceptable offers,
following that order of priority, and accept that offer which would afford the
greatest financial recovery by the corporations depositors.

3. If a thrift company of which the [administrator]commissioner
took possession before May 1, 1985, is acquired by or merged with any depository institution or its parent or affiliate, that thrift
company, or the acquiring institution, or the institution which results from
the merger has all the rights, powers and privileges of any other depository
institution in this state of the same class.

depository institution or its parent or affiliate, that
thrift company, or the acquiring institution, or the institution which results
from the merger has all the rights, powers and privileges of any other
depository institution in this state of the same class. If the institution
which acquires or merges with the thrift company does not own or operate a bank
or a savings and loan association in this state it may acquire, establish or
operate [one such]a bank or association. The legislature intends that
this subsection authorize an institution or its parent or affiliate which is
organized under the laws of another state or of the United States and which
principally conducts its operations in another state to acquire, establish or
operate a bank or savings and loan association in this state.

4. If the institution which acquires or
merges with a thrift company pursuant to subsection 3, or a parent or affiliate
of that institution, has acquired a bank located in Nevada pursuant to NRS
666.128, the limitations imposed by NRS 666.132 no longer apply to the
operations of the institution or its parent or affiliate.

Sec.385.NRS 677.550
is hereby amended to read as follows:

677.550 1. The [administrator]commissioner
may order a licensee to suspend the payment of its liabilities or limit the
payment of its liabilities in such manner as he prescribes, if it appears to
the [administrator that such]commissioner that this action is necessary for the
protection of the licensee, its depositors or creditors, or in the public
interest. The order is effective upon receipt of notice by the licensee and
continues in effect until rescinded or modified by the [administrator]commissioner in a writing delivered to the manager
or executive officer of the licensee.

2. Subsection 1 does not affect the right
of any licensee to pay its current operating expenses and liabilities incurred
during the period of suspension of limitation.

3. After an order suspending or limiting
the payment of liabilities is effective and until that order is rescinded, the
licensee shall make no assignment or hypothecation of any indebtedness due to
it from a depositor without first crediting thereon the liability of the
licensee to the depositor.

4. The authority granted to the [administrator]commissioner
by this section may be exercised by him in conjunction with all other powers
granted by this chapter, or independently from them.

Sec.386.NRS 677.560
is hereby amended to read as follows:

677.560 Whenever the [administrator]commissioner
has taken possession of the property and business of any licensee, [such]a licensee,
within 10 days after [such]a taking, if it deems itself aggrieved thereby, may
apply to the district court in the county in which the main office of the
licensee is located to enjoin further proceedings. The court, after citing the [administrator]commissioner
to show cause why further proceedings should not be enjoined and after a
hearing and a determination of the facts upon the merits may dismiss such
application or enjoin the [administrator]commissioner from further proceedings and direct
him to surrender the property and business to such licensee, or make such
further order as may be just.

677.570 When the [administrator]commissioner takes possession of the property and
business of any company for the purpose of liquidation or conservation, he may
liquidate or conserve the company. In such a liquidation or conservation the [administrator]commissioner
has the same authority with reference to licensees as are vested in the [administrator]commissioner
by Title 55 of NRS with reference to banks and in addition may deposit money
coming into his hands in the course of liquidation in one or more state or
national banks.

Sec.388.NRS 677.620
is hereby amended to read as follows:

677.620 1. A licensee shall
not have at any time deposits in an aggregate sum in excess of 10 times the
aggregate amount of its paid-up and unimpaired capital and unimpaired surplus.

2. If a licensee has operated under this
chapter for 1 year or more and during its most recent fiscal year has been
profitable, the [administrator]commissioner may increase the ratio of deposits to
paid-up and unimpaired capital and unimpaired surplus prescribed in subsection
1 to not more than the greatest net worth to savings ratio permitted for any
savings and loan association operating in this state. The [administrator]commissioner
shall give his approval or denial of the application for an increased ratio to
the licensee in writing with supporting reasons within 30 days after the date
of application by the licensee unless the [administrator]commissioner gives notice within the original
30-day period that he is extending the period for decision for a term not to
exceed an additional 30 days. The [administrator]commissioner may, for reasonable cause, decrease
the ratio permitted under this subsection at any time, but not below the ratio
prescribed in subsection 1.

3. No licensee may have total borrowings,
exclusive of deposits, which exceed the larger of:

(a) Five times its capital and surplus; or

(b) The face amount of total deposits at the
time a borrowing is made.

4. Except as otherwise provided in
subsection 5, each licensee shall establish a liquidity reserve immediately
upon beginning business, as a special account with an initial balance of
$50,000. Money cannot be withdrawn from the reserve or the account put to any
other use without the permission of the [administrator.]commissioner. Money in the reserve may be
invested only in obligations of the United States, this or any other state, or
federally insured financial institutions in this state or any Federal Reserve Bank.
At least annually, but no later than at the end of each fiscal year of the
licensee, an amount equal to 1 percent of the licensees deposits must be added
to the reserve until its balance reaches 1.5 percent of the net deposits.
Interest earned on the principal of the reserve must not be withdrawn except as
permitted for other money of the reserve, but may be credited against the
required addition.

5. If the deposits of a licensee are
insured pursuant to the provisions of NRS 677.247, the licensee need not
maintain a liquidity reserve.

677.630 1. A licensee may
purchase, hold, develop and convey real property, including apartments and
other buildings, for the following purposes only:

(a) Real property conveyed to it in satisfaction
of debts contracted in the course of its business.

(b) Real property purchased at sale under
judgments, decrees or mortgage foreclosures or foreclosures of or trustees
sales under deeds of trust under securities held by it. A licensee shall not
bid against its debtor at any such sale in a larger amount than is necessary to
satisfy its debt and costs.

(c) Real property necessary as premises for the
transaction of its business. A licensee shall not invest directly or indirectly
an amount exceeding one-third of its paid-up capital and surplus in the lot and
building in which the business of the company is carried on, furniture and fixtures,
and vaults, necessary and proper to carry on its business.

(d) Real property purchased or held for the
purpose of development. An investment for this purpose must not exceed the
market value of the property as evidenced by an appraisal prepared within 120
days before the investment by a member of the American Institute of Real Estate
Appraisers, the Society of Real Estate Appraisers or the Independent Fee
Appraisers Society, or by an appraiser approved by the [administrator.]commissioner. Before the investment is made:

(1) The licensee shall provide the [administrator]commissioner
with a certified copy of one or more appraisal reports and a report from a
title insurer which shows the chain of title and the amount of consideration
for which the title was transferred, if that information is available, for at
least 3 years.

(2) The [administrator]commissioner may require a statement from the
licensee disclosing whether or not any director, officer or employee of the
licensee has, or has had within the last 3 years, any direct or indirect
interest in the property. For the purposes of this paragraph, interest
includes ownership of stock in a corporation which has an interest in the
property.

If the total amount to be invested in real property for
residential development exceeds its capital accounts or 10 percent of the total
deposits of the licensee, whichever is less, the investment may not be made
without the written approval of the [administrator.]commissioner. Any person who fails to make a
disclosure required by this section is guilty of a misdemeanor.

2. No real estate acquired pursuant to
paragraph (a) or (b) of subsection 1 may be held for a longer period than 5
years unless it has been improved by the license and is producing a fair income
based upon the appraised value.

Sec.390.NRS 677.640
is hereby amended to read as follows:

677.640 A licensee shall not make loans
or accept deposits under this chapter:

1. Within any office, suite, room or
place of business in which any other business is solicited or engaged in,
except an insurance agency or notary public, or in association or conjunction
with any other business unless authority to do so is given by the [administrator.]commissioner.

2. Under any name or at any place other
than that stated in the license.

This section does not prevent the making of loans by mail or
prohibit accommodations to individual borrowers when necessitated by hours of
employment, sickness or other emergency situations.

Sec.391. NRS 677.810
is hereby amended to read as follows:

677.810 Any director, officer or employee
of a licensee who:

1. Asks for or receives or consents or
agrees to receive any commission, emolument or gratuity or any money, property
or thing of value for procuring or endeavoring to procure for any person any
loan from the licensee, or the purchase or discount of any note, contract or
other obligation or property by the licensee;

2. Knowingly receives or possesses
himself of any of its property otherwise than in payment of a just demand, or
with intent to defraud omits to make or cause to be made a full and true entry
thereof in its books and accounts or concurs in omitting to make any material
entry thereof;

3. Knowingly makes or concurs in making
or publishing any false entry in its books or records, any written report,
exhibit or statement of its affairs or pecuniary condition containing any
material statement which is false, or having the custody of its books willfully
refuses or neglects to make any proper entry in [such]the books as required by law, or to exhibit or
allow them to be inspected or extracts to be taken therefrom by the [administrator]commissioner
or his deputies or investigators, or alters, conceals, destroys or removes any
book or record;

4. Embezzles, abstracts or willfully
misapplies the money, securities or credits of a licensee, or who, with the
intent to injure or defraud the licensee or a customer of the licensee:

(a) Issues or puts forth a deposit;

(b) Draws a draft, bill of exchange or mortgage;
or

(c) Otherwise uses his position or employment
with a licensee; or

5. Knowingly aids or abets the commission
of an act prohibited by this section,

shall be punished by imprisonment in the state prison for
not less than 1 year nor more than 10 years, or by a fine of not more than
$50,000, or by both fine and imprisonment.

Sec. 392. NRS 677.850
is hereby amended to read as follows:

677.850 Every officer or employee of any
company who accepts deposits knowing:

1. That the company is insolvent; or

2. That the acceptance violates any
provision of this chapter or any order or regulation of the [administrator,]commissioner,

shall be punished by imprisonment in the state prison for
not less than 1 year nor more than 6 years, or by a fine of not more than
$5,000, or by both fine and imprisonment.

Sec. 393. Chapter 678 of
NRS is hereby amended by adding thereto a new section to read as follows:

Commissioner means the
commissioner of financial institutions.

Sec.394.NRS 678.010
is hereby amended to read as follows:

678.010 As used in this chapter, unless
the context otherwise requires, the words and terms defined in NRS 678.020 to
678.240, inclusive, and section 393 of this act, have
the meanings ascribed to them in those sections.

Sec.395.NRS 678.250
is hereby amended to read as follows:

678.250 The [administrator]commissioner shall administer the provisions of
this chapter, subject to administrative supervision by the director and the
credit union advisory council. He shall make the decisions and determinations
and adopt regulations which are necessary or reasonably appropriate to
accomplish the purposes of this chapter.

Sec.396.NRS 678.260
is hereby amended to read as follows:

678.260 The [administrator]commissioner shall:

1. Adopt a regulation establishing the
minimum surety bond required of credit unions in relation to the amount of
property under their control.

2. Maintain the original application of
every credit union in a permanent file.

3. Maintain for at least 6 years, every
report filed by a credit union with the division of financial institutions.

4. Except as otherwise provided in NRS
678.800 and 678.810, deposit all fees, charges for expenses, assessments and
other money which is collected pursuant to the provisions of this chapter or
any regulation adopted thereunder, in the state treasury.

5. Prepare copies of articles of
incorporation and bylaws consistent with the provisions of this chapter which
may be used by persons interested in organizing a credit union.

Sec.397.NRS 678.270
is hereby amended to read as follows:

678.270 The [administrator]commissioner may:

1. Adopt regulations, subject to the
advice and consent of the credit union advisory council, establishing
chartering, supervisory and examination fees; and

2. Cause appropriate legal action to be
taken in the district court of any county to secure an injunction or order
restraining a violation of this chapter.

Sec.398.NRS 678.290
is hereby amended to read as follows:

678.290 1. The credit union
advisory council, consisting of five members appointed by the governor, is
hereby credited to consult with, advise and make recommendations to the [administrator]commissioner
in all matters pertaining to credit unions.

2. The governor shall appoint members who
have tested credit union experience from a list of recommended names submitted
by the Nevada Credit Union League.

3. After the initial terms, members serve
terms of 4 years, except when appointed to fill unexpired terms.

4. The chairman of the advisory council
must be elected annually by and from the members thereof.

5. The meetings of the advisory council
may be held at such times and places as the chairman or [administrator]commissioner determines and may be held regularly
at least once every 6 months.

6. Council members are entitled to
receive a salary of $60 for each days attendance at a meeting of the council.

Sec.399.NRS 678.300
is hereby amended to read as follows:

678.300 1. Except for a
credit union organized under the Federal Credit Union Act or a foreign credit
union which has been issued a certificate of authority by the [administrator,]commissioner,
any credit union whose principal business is to borrow, loan and invest money
on behalf of its members and which issues membership certificates must be
incorporated under the provisions of this chapter. For that purpose, the
provisions of NRS 81.410 to 81.540, inclusive, which are not in conflict with
the provisions of this chapter, apply to such corporations and to the officers
and stockholders thereof, except as otherwise provided in NRS 678.342 to
678.347, inclusive.

2. A credit union organized under the
provisions of this chapter has perpetual existence, subject to dissolution as
provided in this chapter.

Sec.400.NRS 678.310
is hereby amended to read as follows:

678.310 1. The secretary of
state shall not issue any certificate of incorporation to any credit union
authorizing it to do business in this state under the articles of incorporation
are approved by the [administrator.]commissioner.

2. An amendment to [such]the articles
of incorporation may not be filed by the secretary of state without the written
approval of the [administrator.]commissioner.

3. Not less than seven persons who are
residents of Nevada, have a common bond and are of legal age who desire to
organize a credit union under this chapter shall first execute in triplicate an
application, upon forms to be issued by the [administrator,]commissioner, for permission to organize [such] an association. The applicants
shall submit with or include in their application:

(a) A copy of the articles of incorporation
which must comply with the provisions of NRS 81.440 except where those
provisions conflict with the provisions of this chapter.

(b) The par value of the shares, which must be
$5 or some multiple thereof.

(c) The names and addresses of the applicants
and an itemized account of the financial condition of the applicants and the
proposed credit union.

(d) The name, which must include the words
credit union, and the principal place of business.

(e) Any additional information which the [administrator]commissioner
may require to determine the character and responsibility of the applicants and
the need for a credit union in the community to be served.

The incorporators shall submit a set of proposed bylaws to
the [administrator]commissioner with their application and the bylaws when
approved by the [administrator]commissioner are effective upon filing the articles of
incorporation. The [administrator]commissioner shall approve or disapprove the
application within 30 days following its receipt.

4. Every application for permission to
organize, as provided for in this section, must be accompanied by an
application fee and a fee payment to cover expenses attendant upon the
investigation required for approval. The amount of the fees must be established
by regulation adopted by the [administrator.]commissioner.

5. The subscribers for a credit union
charter shall not transact any business until formal approval of the charter
has been received.

Sec.401. NRS 678.320
is hereby amended to read as follows:

678.320 1. The articles of
incorporation or bylaws may be amended as provided in the bylaws. Any amendment
to the articles of incorporation or bylaws do not become effective until
approved in writing by the [administrator.]commissioner.

2. The [administrator]commissioner shall not charge any fee for
approving amendments to the articles of incorporation or bylaws of any credit
union organized pursuant to this chapter.

Sec. 402. NRS 678.330
is hereby amended to read as follows:

678.330 1. A credit union
may maintain, with the approval of the [administrator,]commissioner, offices at locations other than its
main office if the maintenance of [such]the offices is reasonably necessary to furnish
service to its members.

2. A credit union may change its
principal place of business within this state upon providing written notice to
the division of financial institutions.

3. A credit union may share office space
with one or more credit unions and contract with a corporation to provide
facilities or personnel.

Sec. 403. NRS 678.342
is hereby amended to read as follows:

678.342 No credit union organized under
the laws of another state may commence or transact any business or maintain an
office in this state without first obtaining a certificate of authority from
the [administrator.]commissioner.

Sec.404.NRS 678.343
is hereby amended to read as follows:

678.343 Each application for an initial
certificate of authority submitted by a foreign credit union must be filed with
the [administrator]commissioner on a form prescribed by him and must
include:

1. A copy of the instrument or authority
by which the credit union was created and a copy of its bylaws.

2. A statement of its membership, if not
contained in its bylaws.

3. A copy of the most recent report
submitted by the credit union to the authorized officer of the state in which
it was organized.

4. Any other information required by the [administrator.]commissioner.

Sec.405.NRS 678.344
is hereby amended to read as follows:

678.344 The [administrator]commissioner shall issue a certificate of
authority to a foreign credit union if he is satisfied that:

1. The members of the credit union to be
served in this state are adequately protected by any form of security which is
comparable to that required of credit unions organized under the provisions of
this chapter.

2. The officer who supervises the credit
union in the state in which it was organized has authorized it to do business
in Nevada and agrees to furnish, upon request, copies of reports relating to
the credit union.

3. The members to be served in this state
have a need for the service and adequate service is not available through
existing credit unions.

4. A resident agent has been designated.

5. The state in which the credit union
was organized issues comparable authorization to credit unions organized under
the provisions of this chapter.

Sec.406.NRS 678.345
is hereby amended to read as follows:

678.345 A foreign credit union which has
been issued a certificate of authority shall:

1. Serve its members in this state in
accordance with its bylaws and the laws of the state in which it was organized,
except where those laws conflict with the provisions of this chapter.

2. File with the [administrator]commissioner a copy of its annual report at the
time it files a similar report with the officer of the state in which it was
organized.

Sec.407.NRS 678.346
is hereby amended to read as follows:

678.346 The [administrator]commissioner may:

1. Examine the records of any foreign credit
union which holds a certificate of authority issued by the [administrator]commissioner
at any time he deems necessary.

2. Revoke a certificate of authority
issued to [such] a credit union if
he finds that the credit union has violated any provision of this chapter or
the regulations of the [administrator.]commissioner.

Sec.408.NRS 678.370
is hereby amended to read as follows:

678.370 The directors of a credit union
shall:

1. Purchase a blanket fidelity bond in
accordance with the regulations of the [administrator]commissioner which provides the credit union with
protection against losses from misappropriation, defalcation in breach of
trust, negligence, acts of God or nature, fire, burglary, robbery or other
cause over which the bonded officers, employers and agents had no control;

2. Declare dividends in the manner
prescribed in the bylaws;

3. Determine the interest rate to be
charged on loans and paid on deposits;

4. Limit the number of shares and the
amount of deposits which may be owned by any member;

5. Establish the compensation of all
employees and officers;

6. Establish the maximum secured and
unsecured loan which may be made to any one member;

7. Designate a depository or depositories
for the [funds]money of the credit union;

8. Suspend or remove any member who fails
to perform or negligently performs his assigned duties;

9. Establish compensation to be paid any
employee, officer or other persons performing services on behalf of the credit
union;

10. Determine from time to time the
interest rate, consistent with the provisions of this chapter, which will be
charged on loans; and

11. Authorize interest refunds to members
from income earned and received in proportion to interest paid by them on such
classes of loans. Such refunds are subject to conditions imposed by the board.

Sec.409.NRS 678.390
is hereby amended to read as follows:

678.390 1. The board may
appoint an audit committee to make an annual audit of the financial records of
the credit union and any interim audits as may be deemed necessary by the board
or as may be directed by the [administrator.]commissioner. A copy of the report must be
submitted to the board and the [administrator]commissioner and a summary presented to the
members at the next annual meeting.

2. The audit committee may by unanimous
vote suspend any director, officer or member of the credit union following an
audit, for any violation of this chapter, the charter or bylaws or for any
other practice which the audit committee deems to be unsafe or unauthorized. In
such cases, the audit committee shall call a special meeting of the members not
less than 7 nor more than 21 days following the suspension and the suspension
must be ratified or overturned by the members.

3. Any member of the audit committee may
be suspended by the board for the same reasons and in the same manner as
provided in subsection 2.

4. The audit committee may by a majority
vote call a special meeting of the members to consider any violation of this
chapter, the charter or bylaws or any practice of the credit union deemed by
the audit committee to be unsafe or unauthorized.

5. The board of directors or the audit
committee may employ the services of a certified public accountant or a
registered public accountant to complete the necessary audit of the records of
the credit union.

Sec.410.NRS 678.410
is hereby amended to read as follows:

678.410 If the [administrator]commissioner notifies the board in writing that
he has information that any director, officer or employee of [such]a credit
union is failing in the performance of his duties, the board shall meet and
consider such matter forthwith. The [administrator
shall]commissioner must have
notice of the time and place of [such]the meeting. If the board of directors finds the [administrators]commissioners
objection to be well founded, such director, officer or employee shall be
removed immediately.

Sec.411. NRS 678.420
is hereby amended to read as follows:

678.420 1. At the
organizational meeting and within 30 days following each annual meeting, the
directors shall elect, from their own number, the executive officers of the
corporation. [Such]The officers must be designated as:

2. The treasurer or general manager shall
give a fidelity bond with good and sufficient surety in an amount and character
to be determined by the board in compliance with regulations prescribed by the [administrator.]commissioner.

3. Each officer shall serve a term of 1
year or until such time as successors are chosen and have qualified.

4. The duties of each office must be as
prescribed in the bylaws of the credit union.

Sec. 412. NRS 678.430
is hereby amended to read as follows:

678.430 Within 30 days following the
election of the executive officers, the secretary shall submit to the [administrator]commissioner
a list of the names and addresses of the directors, officers and committee
members who have been elected or appointed.

Sec. 413. NRS 678.470
is hereby amended to read as follows:

678.470 A credit union may, subject to
the regulations or approval of the [administrator:]commissioner:

1. Receive from its members or from the
members of another credit union deposits which are payable on demand and honor
requests for withdrawals in the form of checks or drafts.

2. Receive deposits from the state
treasurer which are payable on demand pursuant to the provisions of chapter 356
of NRS.

3. Borrow from any source in accordance
with the policy established by the board of directors and discount and sell any
eligible obligations.

4. Sell all or any part of its assets or
purchase all or any part of the assets of another credit union.

Sec.414.NRS 678.670
is hereby amended to read as follows:

678.670 1. [Prior to]Before the
payment of any dividend, the gross earnings of the credit union must be
determined. From the gross earnings a regular reserve against losses must be
set aside according to the following schedule:

(a) Until the regular reserve equals 7.5 percent
of the outstanding loans and risk assets, all credit unions with assets of
$500,000 or less shall withhold 10 percent of the gross earnings. Thereafter, 5
percent of the gross income must be withheld until the regular reserve reaches
10 percent of the outstanding loans and risk assets.

(b) Whenever a credit union has assets of more
than $500,000 and has been in operation for at least 4 years, it shall maintain
its regular reserve as follows:

(1) Until the regular reserve equals 4
percent of the outstanding loans and risk assets, the credit union shall
withhold 10 percent of its gross earnings.

(c) Whenever the regular reserve falls below the
required levels, it must be replenished by regular contributions sufficient to
maintain the regular reserve at the levels required by paragraphs (a) and (b).

2. The regular reserve belongs to the
credit union and must not be distributed except on liquidation of the credit
union or in accordance with a plan approved by the [administrator.]commissioner.

Sec.415.NRS 678.680
is hereby amended to read as follows:

678.680 In addition to regular reserve,
special reserves to protect the interest of members must be established when:

1. Required by regulations issued by the [administrator;]commissioner;
or

2. Directed by the board of the credit
union.

Sec.416.NRS 678.750
is hereby amended to read as follows:

678.750 1. A credit union
may purchase insurance on the lives of its members in an amount equal to their
respective shares, deposits and balances on a loan or any of them.

2. A credit union may enter into
cooperative marketing arrangements for its members covering such services as
group life insurance, coverage for temporary disability, plans for health and
accident and such other programs which are demonstrated to be in the interest
of improving the economic and social conditions of the credit unions members.

3. A credit union must apply to the [administrator]commissioner
for approval of a plan of insurance for members accounts, either pursuant to
the Federal Credit Union Act of 1934, as amended, (12 U.S.C. §§ 1781 et seq.),
or under a contract of insurance issued by an insurer, which must be approved
by the [administrator]commissioner and the commissioner of insurance pursuant
to NRS 678.755. The issuance of such a contract is not transacting insurance
under Title 57 of NRS.

4. The [administrator]commissioner shall make available reports of the
financial condition of credit unions, reports of examinations made pursuant to
NRS 678.790 and any other reports that may be required by the insurer and
deemed appropriate by the [administrator.]commissioner. If a credit union is closed because
of bankruptcy or insolvency, the [administrator]commissioner may appoint a liquidating agent.

Sec.417.NRS 678.755
is hereby amended to read as follows:

678.755 1. In determining
whether a private insurer is acceptable to issue a contract for the insurance
of deposits, the [administrator]commissioner and the commissioner of insurance must
consider:

(a) The value of the insurers capital.

(b) The ratio of the insurers assets, including
reinsurance, which are readily available to cover any losses incurred by
depositors, to its insured deposits. This ratio must be adequate to reimburse
depositors for any losses which they may incur and may not be less than the
ratio maintained by the share insurance fund established under the Federal
Credit Union Act of 1934, as amended, (12 U.S.C. §§ 1781 et seq.).

(c) The qualifications of the directors,
officers and managers of the insurance company.

(d) The insurers articles of incorporation and
its bylaws and all amendments thereto.

(e) The insurers policies for investments.

(f) The form of all insurance contracts entered
into by the insurer, including contracts for reinsurance.

(g) The insurers requirements for premiums or
deposits.

(h) The insurers policies for the management of
risk.

(i) Such other considerations as the [administrator]commissioner
may provide by regulation which are necessary to carry out the provisions of
this act.

2. The [administrator]commissioner and the commissioner of insurance shall not approve a contract of insurance
unless the protection afforded thereby to the depositors is substantially
equivalent to the protection afforded by the Federal Credit Union Act of 1934,
as amended, (12 U.S.C. §§ 1781 et seq.) to the depositors.

3. After a private insurer obtains the
approval of the [administrator]commissioner and the commissioner [, the administrator,]of insurance, the commissioner, after consultation with
the commissioner [,]of insurance may, for cause, require the insurer to
establish and maintain for such a time as the [administrator]commissioner may require, a reserve, in cash or
United States treasury bills or notes, in an amount fixed by the [administrator.]commissioner.
If required, the reserve must be kept in an account approved by the [administrator]commissioner
in a federally insured financial institution located in this state.

Sec.418.NRS 678.760
is hereby amended to read as follows:

678.760 [Funds]Money not used in loans to members may be
invested in:

1. Securities, obligations,
participations or other instruments of or issued by or fully guaranteed as to
principal and interest by the United States of America or any agency thereof or
in any trust or trusts established for investing directly or collectively in
these instruments;

2. Obligations of this state or any
political subdivision thereof;

3. Certificates of deposit or passbook
type accounts issued by a state or national bank, mutual savings bank or
savings and loan association;

4. Loans to or shares or deposits of
other credit unions as permitted by the bylaws;

5. Capital shares, obligations or
preferred stock issues of any agency or association organized either as a stock
company, mutual association or membership corporation if the membership or
stockholdings, as the case may be, of the agency or association are confined or
restricted to credit unions or organizations of credit unions, and the purposes
for which the agency or association is organized are designed to service or
otherwise assist credit union operations;

6. Shares of a cooperative society
organized under the laws of this state or the United States in a total amount
not exceeding 10 percent of the shares, deposits and surplus of the credit
union;

7. Capital stock and other securities of
a corporation for economic revitalization and diversification organized under
the provisions of chapter 670A of NRS, if the credit union is a member of the
corporation, and to the extent of its loan limit established under NRS
670A.200;

8. Stocks and bonds of United States
corporations to a maximum of 5 percent of members shares, except that such an
investment must be limited to stocks or bonds yielding income which are
approved by the [administrator;]commissioner; and

9. Loans to any credit union association,
national or state, of which the credit union is a member, except that such an
investment must be limited to 1 percent of the shares, capital deposits and
unimpaired surplus of the credit union.

Sec.419.NRS 678.765
is hereby amended to read as follows:

678.765 A credit union must not invest in
fixed assets without the prior approval of the [administrator]commissioner if the aggregate value of the credit
unions existing fixed assets exceeds 7 percent of its total assets.

Sec.420.NRS 678.780
is hereby amended to read as follows:

678.780 Every credit union organized
under this chapter shall submit an annual financial report for the calendar
year to the [administrator]commissioner on or before the 1st day of February on
forms supplied by him for that purpose.

Sec.421. NRS 678.800
is hereby amended to read as follows:

678.800 1. Any credit union
may, with the approval of the [administrator,]commissioner, merge with another credit union
under the existing charter of the other credit union, pursuant to any plan
agreed upon by the majority of the board of each credit union joining in the
merger and approved by the affirmative vote of:

(a) A majority of the members of the merging
credit union present at a meeting called for that purpose; or

(b) A majority of the members of the merging
credit union voting by mail on the question.

2. After agreement by the directors of
each credit union and approval by the members of the merging credit union, the
chairman and secretary of each credit union shall execute a certificate of
merger, which must set forth:

(a) The time and place of the meeting of the
board of directors at which the plan was agreed upon;

(b) The vote in favor of adoption of the plan;

(c) A copy of the resolution or other action by
which the plan was agreed upon;

(d) The circumstances of the vote in which the
members approved the plan agreed upon, if a vote was required; and

(e) The vote by which the plan was approved by
the members, if a vote was required.

3. A copy of each of the certificates
executed pursuant to subsection 2 and a copy of the plan of merger agreed upon
by the credit unions joining in the merger must be forwarded to the division of
financial institutions for certification and returned to the credit unions
within 30 days.

4. After a merger is effected, all
property, property rights and interest of the merged credit union vests in the
surviving credit union without deed, endorsement or other instrument of
transfer, and all debts, obligations and liabilities of the merged credit union
[shall be]are
deemed to [have been]be assumed by the surviving credit union under whose
charter the merger was effected.

5. If the surviving credit union is to be
a credit union chartered under the laws of this state, the application for
approval of the merger must be accompanied by an application fee in an amount
prescribed by regulation of the [administrator.]commissioner. The applicant shall also pay such
additional expenses incurred in the process of investigation as the [administrator]commissioner
deems necessary. All money received by the [administrator]commissioner pursuant to this subsection must be
placed in the investigative fund created by NRS 232.285.

6. The [administrator]commissioner shall adopt regulations under which
he may order any credit union chartered under the provisions of this chapter to
merge with:

(a) Another credit union chartered under the
provisions of this chapter; or

(b) A credit union chartered under the laws of
another state or of the United States, if a majority of the board of that
credit union approves the merger,

when he determines that the merger is in the best interest
of the members of the merging credit union.

7. This section is to be liberally
construed to permit a credit union chartered under this chapter to merge with a
credit union chartered under this chapter or any other provisions of law.

Sec. 422. NRS 678.810
is hereby amended to read as follows:

678.810 1. A credit union
chartered under the laws of this state may be converted to a credit union
chartered under the laws of any other state or under the laws of the United
States, subject to regulations adopted by the [administrator.]commissioner.

2. A credit union chartered under the
laws of the United States or of any other state may convert to a credit union
chartered under the laws of this state. To effect such a conversion, a credit
union must comply with all the requirements of the authority under which it was
originally chartered and the requirements of the requirements of the [administrator]commissioner
and file proof of such compliance with the [administrator.]commissioner.

3. Every application for permission to
convert to a credit union chartered under the laws of this state must be
accompanied by an application fee in an amount prescribed by regulation of the [administrator.]commissioner.
The applicant shall also pay such additional expenses incurred in the process
of investigation as the [administrator]commissioner deems necessary. All money received
by the [administrator]commissioner pursuant to this subsection must be placed
in the investigative fund created by NRS 232.285.

666.205 1. The
commissioner may apply to the district court for an order compelling compliance
with any provision of NRS 666.065 to 666.195, inclusive. The court may award
the administrator the costs of bringing the action and attorneys fees.

2. The
administrator may bring an action against a person who violates a court order
or injunction issued pursuant to this section or NRS 666.065 to 666.195,
inclusive, to recover a civil penalty of not more than $10,000 for each
violation.

3. The
commissioner may bring an action to require a [bank]
holding company for a depository institution which
acquired a[bank] depository institution in Nevada [pursuant to NRS 666.132] to divest
itself of all interest in the acquired [bank]institution if the [bank]
holding company violates:

(a) An order to cease
and desist issued pursuant to NRS 666.175; or

(b) A court order or
injunction issued pursuant to this section or NRS 666.065 to 666.195,
inclusive.

Sec.424.Section
35 of chapter 656, Statutes of Nevada 1985, is hereby amended to read as
follows:

Sec. 35. Section
17 of Senate Bill No. 26 of the 63rd session of the legislature is hereby
amended to read as follows:

Sec. 17. The
administrator may examine and supervise any foreign depository institution or holding
company which has been authorized to do business in this state. Such
institutions and holding companies are subject to regulation in the same manner
as institutions and holding companies organized under the laws of this state
and must pay the same fees for supervision and examination.

Sec.425.Section
35.3 of chapter 656, Statutes of Nevada 1985, is hereby amended to read as
follows:

Sec. 35.3. Section
20 of Senate Bill No. 26 of the 63rd session of the legislature is hereby
amended to read as follows:

Sec. 20. 1. If
the commissioner considers it necessary to protect depositors, creditors and
other customers of a failing depository institution or a failing holding
company which controls a depository institution, he may solicit offers from and
authorize or require the acquisition of the institution or company by or its
merger with another institution or company in the following order of priority:

(a) A depository
institution of the same class organized under the laws of this state or a
holding company whose subsidiaries are of the same class and whose operations
are principally conducted in this state.

(b) Any other
depository institution licensed under the laws of this state or of the United
States if its principal office is located in this state, including institutions
which have offices in other states.

(c) [A depository institution licensed under the laws of
another state or of the United States whose operations are principally
conducted in a reciprocal state, or a holding company for such an institution.

(d)] A
depository institution licensed under the laws of another state or of the
United States[which does not meet the
requirements of paragraph (a), (b) or (c),]or a holding company
for such an institution.

The commissioner shall solicit
written offers from all eligible institutions, regardless of the order of
priority established by this subsection, and wait at least 30 days after
solicitation before selecting the institution to be approved.

2. The selection
of an institution must be made in accordance with the order of priority
established in subsection 1 only if such a selection affords the greatest
financial recovery by the failing institutions depositors of all offers
received. If it does not, the commissioner may negotiate with the institutions
submitting offers, following that order of priority, and accept that offer
which would afford the greatest financial recovery by the failing institutions
depositors.

Sec.426.Section
2 of Senate Bill No. 527 of this session is hereby amended to read
respectively as follows:

Sec. 2. A
licensee may, with the approval of the [administrator,]commissioner, exercise any authority, right,
power and privilege, and perform any act and enjoy the same immunities as banks
licensed pursuant to chapter 659 of NRS.

AN ACT making an appropriation to the
Commission on Economic Development for costs of operating the International
Trade Office; and providing other matters properly relating thereto.

[Approved June 26, 1987]

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN
SENATE

AND ASSEMBLY, DO ENACT AS FOLLOWS:

Section 1. There is hereby
appropriated from the state general fund to the Commission on Economic
Development for the costs of operating the International Trade Office:

For the fiscal year 1987-88........................................................................ $50,000

For the fiscal year 1988-89........................................................................ 50,000

Sec. 2. Any balance of the
sums appropriated by section 1 of this act remaining at the end of the
respective fiscal years must not be committed for expenditure after June 30 and
reverts to the state general fund as soon as all payments of money committed
have been made.

________

CHAPTER 760, AB 129

Assembly Bill No.
129Assemblymen Dini and Sader

CHAPTER 760

AN ACT relating to the rights of the
defendant; authorizing the use of closed-circuit television for certain
judicial proceedings; revising provisions regarding the defendants absence at
certain judicial proceedings; and providing other matters properly relating
thereto.

[Approved June 26, 1987]

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN
SENATE

AND ASSEMBLY, DO ENACT AS FOLLOWS:

Section 1. NRS 178.388 is hereby
amended to read as follows:

178.388 1. [The defendant shall]Except as otherwise provided in this Title, the defendant must
be present at the arraignment, at every stage of the trial including the
impaneling of the jury and the return of the verdict, and at the imposition of
sentence . [,
except as otherwise provided by this Title.] A corporation may
appear by counsel for all purposes.

2. In prosecutions for offenses not
punishable by death, the defendants voluntary absence after the trial has been
commenced in his presence [shall]must not prevent continuing the trail to and including
the return of the verdict.

3. In prosecutions for offenses
punishable by fine or by imprisonment for not more than 1 year , or both, the court, with the written consent of the defendant, may permit arraignment, plea, trial and imposition
of sentence in the defendants absence [.]

defendant, may permit arraignment, plea, trial and
imposition of sentence in the defendants absence [.], if the court determines that the defendant was fully
aware of his applicable constitutional rights when he gave his consent.

4. The presence of the defendant is not required at the arraignment
or any preceding stage if the court has provided for the use of a
closed-circuit television to facilitate communication between the court and the
defendant during the proceeding. If closed-circuit television is provided for,
members of the news media may observe and record the proceeding from both
locations unless the court specifically provides otherwise.

5. The
defendants presence is not required at the settling of jury instructions.

AN ACT making an appropriation to the
State Board of Education to provide matching money for the student financial
aid grant program; and providing other matters properly relating thereto.

[Approved June 26, 1987]

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN
SENATE

AND ASSEMBLY, DO ENACT AS FOLLOWS:

Section 1. 1. Except
as otherwise provided in subsection 2, there is hereby appropriated from the
estate tax account in the state general fund created pursuant to section 4 of
chapter 21, Statutes of Nevada 1987, to the State Board of Education to match a
grant received from the Federal Government pursuant to the State Student
Incentive Grant Program the sum of:

For the fiscal year 1987-1988.................................................................. $225,000

For the fiscal year 1988-1989.................................................................. 225,000

2. If Senate Bill No. 23 of this session
is passed and approved and creates an estate tax account for the endowment of
the University of Nevada System, the amounts appropriated by subsection 1 must
be appropriated from the estate tax account for the endowment of the University
of Nevada System.

3. A sum of not more than $21,000 per
year must be allocated to the department of education from the amounts
appropriated by subsection 1 or 2 for administration of the program.

4. The balance of the amounts
appropriated by subsection 1 or 2 must be used to provide grants to
undergraduate and graduate students who have been determined as having
financial need and who are enrolled at least half time in approved public
institutions of postsecondary education.

5. Any balance of the sums appropriated
by subsection 1 remaining at the end of the respective fiscal years must not be
committed for expenditure after June 30 and reverts to the estate tax account
in the state general fund as soon as all payments of money committed have been
made.

AN ACT relating to acquired immune
deficiency syndrome; making certain acts of prostitution unlawful; requiring
testing of certain persons for exposure to the virus which causes the syndrome;
making a person who tests positive for the virus and later engages in
prostitution guilty of a felony; making certain owners of houses of
prostitution and their agents liable for damages if they employ as a prostitute
a person who has tested positive; providing a penalty; and providing other
matters properly relating thereto.

[Approved June 26, 1987]

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN
SENATE

AND ASSEMBLY, DO ENACT AS FOLLOWS:

Section 1. Chapter 201 of NRS is
hereby amended by adding thereto the provisions set forth as sections 2, 3 and
4 of this act.

Sec. 2. 1. It is unlawful for any person to engage in
prostitution or solicitation therefor, except in a house of prostitution licensed
pursuant to NRS 244.345.

2. Any person who
violates subsection 1 is guilty of a misdemeanor.

Sec. 3. 1. Any person who is arrested for a violation of
section 2 of this act must submit to a test, approved by regulation of the
state board of health, to detect exposure to the human immunodeficiency virus.
If the person is convicted of a violation of section 2 of this act, he shall
pay the sum of $100 for the cost of the test.

2. If the results
of the test are positive, the person performing the test shall immediately
transmit the results of the test to the arresting law enforcement agency. That
agency shall:

(a) Mail the results by
certified mail to the person arrested, at his last known address; or

(b) If the person
arrested is in the custody of the agency, personally deliver the results to
him.

Sec. 4. Any person who:

1. Violates
section 2 of this act; or

2. Works as a
prostitute in a licensed house of prostitution, after
testing positive in a test approved by the state board of health and receiving
written notice of that fact is guilty of a felony and shall be punished by
imprisonment in the state prison for not less than 1 year nor more than 20
years, or by fine of not more than $10,000, or by both fine and imprisonment.

after testing positive in a test
approved by the state board of health and receiving written notice of that fact
is guilty of a felony and shall be punished by imprisonment in the state prison
for not less than 1 year nor more than 20 years, or by fine of not more than
$10,000, or by both fine and imprisonment.

Sec. 5. NRS 201.295 is
hereby amended to read as follows:

201.295 As used in NRS [201.300]201.295 to
201.440, inclusive, and sections 2, 3 and 4 of this act,
unless the content otherwise requires:

1. Prostitute means a male or female
person who for a fee engages in sexual intercourse, oral-genital contact or any
touching of the sexual organs or other intimate parts of a person for the
purpose of arousing or gratifying the sexual desire of either person.

2. Prostitution
means engaging in sexual conduct for a fee.

3. Sexual
conduct means any of the acts enumerated in subsection 1.

Sec. 6. Chapter 41 of NRS is
hereby amended by adding thereto a new section to read as follows:

Except as otherwise provided in
subsection 2, an owner of a house of prostitution, the person who operates the
house or his agent who employs or continues to employ a prostitute after he
knows or should know that the prostitute has tested positive in a test approved
by regulation of the state board of health for exposure to the human
immunodeficiency virus, is liable for any damages caused to a person exposed to
the virus as a result of the employment.

Sec.7. Chapter 439 of
NRS is hereby amended by adding thereto a new section to read as follows:

The state board of health shall
evaluate and approve, by regulation, tests to detect exposure to the human
immunodeficiency virus. The board shall not approve any series of tests, the
results of which are not considered by the medical community to be reliable at
least 95 percent of the time.

(1) For any
one kind of insurance as defined in NRS 681A.010 to 681A.080, inclusive [250]................................................................................................................. 283

(2) For two
or more kinds of insurance as so defined ............................ 500

(3) For a
reinsurer ......................................................................................... 250

(c) Each annual continuation of a certificate:

(1) For
any one kind of insurance as defined in NRS 681A.010 to 681A.080, inclusive ...................................................................................................................... 250

(2) For
two or more kinds of insurance as so defined ......................... 578

2. Charter
documents, other than those filed with application for certificate of
authority. Filing amendments to articles of incorporation, charter, bylaws,
power of attorney and other constituent documents of the insurer, each document
....................................... $10

19. For
copies and amendments of documents on file in the division, a reasonable charge
fixed by the commissioner, including charges for duplicating or amending the
forms and for certifying the copies and affixing the official seal.

20. Letter
of clearance for an agent or broker .............................................. $5

21. Certificate
of status as a licensed agent or broker ................................ $5

AN ACT relating to local financial
administration; increasing the maximum allowable annual increase in revenue for
a local government from taxes ad valorem; increasing the maximum allowable
combined revenue of a local government for the fiscal year 1987-1988; and
providing other matters properly relating thereto.

[Approved June 26, 1987]

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN
SENATE

AND ASSEMBLY, DO ENACT AS FOLLOWS:

Section 1. Chapter 354 of NRS is
hereby amended by adding thereto a new section to read as follows:

1. For the fiscal
year 1987-1988, the maximum allowable combined revenue and the combined revenue
of each local government from the supplemental city-county relief tax and taxes
ad valorem otherwise allowable pursuant to NRS 354.59805, 354.59811 and
354.59816 and subsection 3 of NRS 354.5982 must be increased by 5 percent.

2. For each fiscal
year after the fiscal year 1987-1988, any increase authorized in subsection 1,
must be included in determining the local governments maximum allowable
revenue from taxes ad valorem and maximum allowable combined revenue from the
supplemental city-county relief tax and taxes ad valorem.

3. For the
purposes of subsections 1 and 2, in a county whose population is less than
100,000, a city whose actual tax rate, for purposes other than debt service,
was zero per $100 of assessed valuation is entitled to the use of a rate not
greater than 15 cents per $100 of assessed valuation.

4. Any local
governing body which proposes to raise its tax rate pursuant to the provisions
of subsections 1 and 2 shall provide notice of that fact to the residents of
the area it governs.

5. The notice
required by subsection 4 must:

(a) State that the governing
body proposes to raise the ad valorem tax rate pursuant to the provisions of
this section.

(b) Be published in a
newspaper of general circulation in the county at least once before the meeting
in which the proposal will be considered. The notice must be set in boldface
type and at least one quarter of the newspapers page in size.

6. Any additional
revenue from ad valorem taxes which a local government is authorized to receive
as a result of the application of this section must be reduced in the fiscal
year 1987-1988 by the revenue generated from any special ad valorem levies for
operating expenses authorized by the voters or by special act of the
legislature between January 1, 1987, and July 1, 1987. The revenue generated
from those levies must be added to the revenue which a local government is
authorized to receive beginning with the fiscal year 1988-1989.

354.59811 For each fiscal year beginning
on or after July 1, 1983, the revenue of the local government from taxes ad
valorem, except those levied for debt service, must not exceed the amount
calculated as follows:

1. The rate must be set so that when
applied to the current fiscal years assessed valuation of all property which
was on the preceding fiscal years assessment roll, excluding net proceeds of
mines, it will produce [104.5]106 percent of the maximum revenue allowable from taxes
ad valorem for the preceding fiscal year.

2. This rate must then be applied to the
total assessed valuation, excluding net proceeds of mines but including new
real property, possessory interests and mobile homes, for the current fiscal
year.

Sec. 3. NRS 354.59816 is
hereby amended to read as follows:

354.59816 1. For the fiscal
years beginning on and after July 1, 1984, the maximum allowable revenue from
the supplemental city-county relief tax and taxes ad valorem, combined, but
excluding any tax levied ad valorem for debt service, must be calculated as
follows:

(a) Assessed valuation for the preceding fiscal
year, excluding net proceeds of mines, is added to an amount equal to the
product of that assessed valuation multiplied by [80
percent of] the proportionate increase in the Consumer Price
Index for the preceding calendar year. To this sum must be added the assessed
value of the new real property, possessory interests and mobile homes added to
the assessment rolls in the past year for that local government.

(b) The percentage increase that the total
calculated pursuant to paragraph (a) represents over the assessed valuation,
excluding net proceeds of mines, for the preceding year is the maximum
percentage by which the combined amount allowable from the supplemental
city-county relief tax and taxes ad valorem may increase over the amount
allowed for the preceding year.

2. If the local government levies a tax
ad valorem for debt service upon an obligation which has previously been repaid
from another source, the combined amount which it may receive pursuant to this
section is reduced by the amount of that tax ad valorem.

3. If a board of county commissioners
which during the fiscal year ending on June 30, 1981, distributed all or part
of the state gaming license fees received pursuant to paragraph (b) of
subsection 2 of NRS 463.320 to other local governments thereafter reduces or
discontinues that distribution, the amount that the county may receive from the
supplemental city-county relief tax is reduced by an equal amount.

AN ACT relating to governmental financing;
requiring an interim study of the fiscal affairs of the state and local
governments in Nevada; making an appropriation; and providing other matters
properly relating thereto.

[Approved June 26, 1987]

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN
SENATE

AND ASSEMBLY, DO ENACT AS FOLLOWS:

Section 1. The legislative
commission shall contract with consultants to conduct an interim study of the
fiscal affairs of the state and local governments in Nevada.

Sec. 2. 1. The
study must include an analysis of existing revenues and possible new revenue
sources.

2. The legislative commission shall:

(a) Define the scope of the study.

(b) Establish a schedule for completion of the
study.

(c) Select the consultants and negotiate the
terms of the contract.

(d) Require scheduled progress reports form the
consultants to ensure that the consultants are adhering to the scope of the
study as established by the legislative commission.

3. The study must be completed and
submitted to the governor and legislative commission on or before September 1,
1988.

Sec. 3. The governor shall
appoint a broad-based committee of no more than 15 persons composed of
representatives of business, industry, gaming, mining, agriculture, education,
labor, local governments and the general public. The committee shall review the
report submitted by the consultants and, before November 30, 1988, submit
findings and recommendations to the legislative commission.

Sec. 4. The legislative
commission shall submit a report, including the findings and recommendations of
the governors review committee, of the study and any recommended legislation
to the 65th session of the legislature.

Sec. 5. 1. There
is hereby appropriated from the state general fund to the legislative fund the
sum of $250,000 for the support of the interim study conducted pursuant to
section 1 of this act.

2. If the cost of the study exceeds the
amount appropriated pursuant to subsection 1, the interim finance committee
shall approve for expenditure an amount sufficient to complete the study, not
to exceed an additional $250,000, which amount is hereby contingently
appropriated from the state general fund to the legislative fund.

3. Any remaining balance of the
appropriations made by subsections 1 and 2 must not be
committed for expenditure after June 30, 1989, and reverts to the state general
fund as soon as all payments of money committed have been made.

AN ACT relating to state finances;
requiring the state board of examiners to issue general obligation bonds to
finance the design of new buildings for the supreme court and the state library
and the completion of the south fork Reservoir; requiring Elko County to repay
to the state a portion of the amount of the bonds issued to complete the
reservoir; authorizing an increase in the limit on revenue that Elko County may
receive from taxes ad valorem to discharge that obligation; and providing other
matters properly relating thereto.

[Approved June 26, 1987]

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN
SENATE

AND ASSEMBLY, DO ENACT AS FOLLOWS:

Section 1. 1. The
state board of examiners shall issue general obligation bonds of the State of
Nevada to provide the money necessary for:

(a) The architectural design of a new Supreme
Court building, in a face amount of not more than $956,543.

(b) The architectural design of a new building
to house the State Library and Archives, in a face amount of not more than
$748,941.

2. The bonds may be issued at one time or
from time to time.

3. The provisions of the State Securities
Law, contained in chapter 349 of NRS, apply to the issuance of bonds pursuant
to this section.

Sec. 2. 1. The
state board of examiners shall issue general obligation bonds of the State of
Nevada to provide the money necessary for the completion of the design and
construction of the dam and park begun pursuant to chapter 479, Statutes of
Nevada 1983, in a face amount of not more than $5,800,000.

2. The bonds may be issued at one time or
from time to time.

3. The provisions of the State Securities
Law, contained in chapter 349 of NRS, apply to the issuance of bonds pursuant
to this section.

4. The legislature finds and declares
that the issuance of bonds pursuant to this section is necessary for the
protection and preservation of the natural resources of this state and for the
purpose of obtaining the benefits thereof, and
constitutes an exercise of the authority conferred by the second paragraph of
section 3 of article 9 of the constitution of the State of Nevada.

and constitutes an exercise of the authority conferred by
the second paragraph of section 3 of article 9 of the constitution of the State
of Nevada.

Sec. 3. The board of county
commissioners of Elko County shall pay to the state a sum equal to 25 percent
of the amount of the bonds issued pursuant to section 2 of this act. The amount
must be paid in equal installments by July 1 of each year for 16 years. The
state treasurer shall credit the interest earned on money paid pursuant to this
section to the sinking fund for the redemption of those bonds.

Sec. 4. 1. The
board of county commissioners of Elko County may add an amount determined by
the board, not to exceed the following amounts, to the amount of revenue from
taxes ad valorem otherwise allowable to Elko County pursuant to NRS 354.58905,
354.59811 and 354.59816, to discharge its obligation pursuant to section 3 of
this act:

For the fiscal year 1987-88 ................................................................... $255,000

For each of the following 15 fiscal
years ........................................... 76,334

2. The amounts received from increases in
taxes ad valorem that are authorized by subsection 1 must not be included in
the determination of maximum allowable combined revenue for the purpose of
distribution of the supplemental city-county relief tax.

Sec. 5. This act becomes
effective upon passage and approval.

________

CHAPTER 767, SB 514

Senate Bill No.
514Committee on Finance

CHAPTER 767

AN ACT making an appropriation to the
Western Interstate Commission on Higher Education for the cost of collecting
delinquent debts; and providing other matters properly relating thereto.

[Approved June 26, 1987]

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN
SENATE

AND ASSEMBLY, DO ENACT AS FOLLOWS:

Section 1. There is hereby
appropriated from the state general fund to the Western Interstate Commission
on Higher Education the sum of $20,000 for the cost of collecting debts owed to
the Western Interstate Commission on Higher Education.

Sec. 2. Any remaining
balance of the appropriation made by section 1 of this act must not be
committed for expenditure after June 30, 1989, and reverts to the state general
fund as soon as all payments of money committed have been made.

AN ACT relating to governmental finances;
imposing a fee upon depository institutions; and providing other matters
properly relating thereto.

[Approved June 26, 1987]

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN
SENATE

AND ASSEMBLY, DO ENACT AS FOLLOWS:

Section 1. 1. The
administrator of financial institutions shall collect a fee in the fiscal years
1987-1988 and 1988-1989 for the privilege of doing business in this state from
each depository institution doing business in this state on or before July 1 of
the calendar years 1987 and 1988, respectively. The fee must be imposed at a
rate calculated by the administrator to generate $1,000,000, plus or minus
$10,000, in each fiscal year. Each institutions fee must be the same portion
of $1,000,000 as its total assets in the state bears to the total assets of all
depository institutions doing business in this state.

2. Each depository institution subject to
the fee imposed pursuant to subsection 1 shall, on or before October 1, 1987,
and October 1, 1988, submit to the administrator a statement of the dollar
value of its total assets in the state as of July 1, 1987, and July 1, 1988,
respectively. The administrator shall determine each institutions fee and
notify the institution in writing of the fee on or before November 1 of the
respective years. One-half of the fee is due on January 1 of the following year
and the remainder is due on June 30.

3. If a depository institution fails to
submit the statement required by subsection 2, the administrator shall require
an audit of the institution by an independent accountant. The auditor shall
determine:

(a) The dollar value of the total assets of the
institution in this state on July 1 of the appropriate year; and

(b) The fee the institution would have been
required to pay had it submitted the statement as required.

The institution shall pay the cost of the audit, the fee
that the auditor determined the institution should have paid, a penalty of 10
percent of that fee, and interest at the rate of 1 percent per month from the
date the fee should have been paid until the date the fee is actually paid.

4. If the administrator has reasonable
grounds for believing that a statement submitted pursuant to subsection 2 is
inaccurate, he may require an audit of the depository institution by an
independent accountant. If the auditor determines that the institution should
have paid a larger fee, the institution shall pay the additional fee and the
penalty and interest required pursuant to subsection 3 on
the additional amount.

pursuant to subsection 3 on the additional amount. If the
auditor determines that the amount indicated in the statement was less than the
actual total assets of the institution in this state by more than 10 percent,
the institution shall pay the cost of the audit. If the auditor determines that
the institution paid more than it should have, the institution is entitled to a
refund of the excess payment.

5. If an additional payment is made
pursuant to subsection 3 or 4, the administrator shall refund the amount by
which the total fees paid in the year exceeds $1,000,000, excluding amounts
paid to pay the cost of an audit or as a penalty or interest, to the other
depository institutions which have paid the fee imposed pursuant to subsection
1, in proportion to the amounts they have actually paid. The administrator is
not required to make a refund pursuant to this subsection if the excess is less
than $10,000.

6. If a depository institution is
delinquent in the payment of the fee imposed pursuant to subsection 1, it shall
pay a penalty of 10 percent of the fee and interest on the fee at the rate of 1
percent per month until the fee is paid. Any fee remaining unpaid 30 days after
it is due constitutes a lien against the assets upon which the fee is based.

7. The administrator shall deposit all
payments received pursuant to this section in the state treasury for credit to
the state general fund.

8. The administrator may adopt such
regulations as he deems necessary to carry out the provisions of this section.

(3) Provides to its customers other
depository accounts which are subject to withdrawal by checks, drafts or other
instruments or by electronic means to effect payment to a third party.

Sec. 2. This act becomes
effective upon passage and approval.

________

κ1987 Statutes
of Nevada, Page 2040κ

CHAPTER 769, SB 597

Senate Bill No.
597Committee on Finance

CHAPTER 769

AN ACT relating to public employees;
making appropriations from the state general fund and the state highway fund to
the state board of examiners for increases in the salaries of certain employees
of the State of Nevada; increasing the salaries of certain employees; and
providing other matters properly relating thereto.

[Approved June 26, 1987]

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN
SENATE

AND ASSEMBLY, DO ENACT AS FOLLOWS:

Section 1. 1. Except
as otherwise provided in this act, to effect increases in salaries of
approximately 3 percent, there is hereby appropriated from the state general
fund to the state board of examiners for the fiscal periods beginning July 1,
1987, and ending June 30, 1988, and beginning July 1, 1988, and ending June 30,
1989, the sums of $3,555,512 and $3,661,817, respectively, for the purpose of
meeting any deficiencies which may be created between the appropriated money of
the respective departments, commissions and agencies of the State of Nevada,
including the judicial branch of government, as fixed by the 64th session of
the legislature and the requirements for salaries of the classified personnel
of those departments, commissions and agencies necessary under an adjusted pay
plan, except those employees whose salaries have been retained, to become
effective on July 1, 1987.

2. The state board of examiners, upon the
recommendation of the director of the department of administration, may
allocate and disburse to the various departments, commissions and agencies of
the State of Nevada, including the judicial branch of government, out of the
money appropriated by this section such sums of money as may from time to time
be required, which when added to the money otherwise appropriated or available
equals the amount of money required to pay the salaries of the classified
employees of the respective departments, commissions and agencies under the
adjusted pay plan.

Sec. 2. 1. To
effect increases in salaries of approximately 3 percent, there is hereby
appropriated from the state highway fund to the state board of examiners for
the fiscal periods beginning July 1, 1987, and ending June 30, 1988, and
beginning July 1, 1988, and ending June 30, 1989, the sums of $458,439 and
$472,620, respectively, for the purpose of meeting any deficiencies which may
exist between the appropriated money of the department of motor vehicles and
public safety, the public service commission of Nevada and the attorney
generals office as fixed by the 64rd session of the legislature and the
requirements for salaries of classified personnel of the department of motor
vehicles and public safety, the public service commission of Nevada and the
attorney generals office necessary under an adjusted pay plan, except those
employees whose salaries have been retained, to become effective July 1, 1987.

2. The state board of examiners, upon the
recommendation of the director of the department of administration, may
allocate and disburse to the department of motor vehicles and public safety,
the public service commission of Nevada and the attorney generals office out
of the money appropriated by this section such sums of money as may from time
to time be required, which when added to the money otherwise appropriated or
available equals the amount of money required to meet and pay the salaries of
the classified employees of the department of motor vehicles and public safety,
the public service commission of Nevada and the attorney generals office under
the adjusted pay plan.

Sec. 3. 1. To
effect increases in salaries of approximately 3 percent, there is hereby
appropriated from the state general fund to the state board of examiners for
the fiscal periods beginning July 1, 1987, and ending June 30, 1988, and
beginning July 1, 1988, and ending June 30, 1989, the sum of $760,695 and
$795,699, respectively, for the purpose of meeting any deficiencies which may
be created between the appropriated money of the University of Nevada System as
fixed by the 64th session of the legislature and the requirements for salaries
of the classified personnel of the University of Nevada System necessary under
the adjusted pay plan, except those employees whose salaries have been
retained, to become effective July 1, 1987.

2. There is hereby appropriated from the
state general fund to the University of Nevada System for the fiscal years
beginning July 1, 1987, and ending June 30, 1988, and beginning July 1, 1988,
and ending June 30, 1989, the sums of $2,159,475 and $2,245,962, respectively,
for the purpose of increasing the salaries of the professional employees of the
University of Nevada System, except those employees whose salaries have been
retained, to become effective July 1, 1987.

3. The state board of examiners, upon the
recommendation of the director of the department of administration, may
allocate and disburse to the University of Nevada System out of the money
appropriated by subsection 1 such sums of money as may from time to time be
required, which when added to the money otherwise appropriated or available
equals the amount of money required to pay the salaries of the classified
employees of the University of Nevada System under the adjusted pay plan.

Sec. 4. The money
appropriated for fiscal years 1987-88 and 1988-89, in sections 1, 2 and 3 of
this act is available for both fiscal years 1987-88 and 1988-89, and may be
transferred from one fiscal year to the other with the approval of the governor
upon the recommendation of the chief of the budget division of the department
of administration. Any balance of that money must not be committed for
expenditure after June 30, 1989, and reverts to the fund from which it was
appropriated as soon as all payments of money committed have been made.

Sec. 5. 1. To
effect increases in salaries of approximately 3 percent, there is hereby
appropriated from the state general fund to the legislative fund for the fiscal
years beginning July 1, 1987, and ending June 30, 1988, and
beginning July 1, 1988, and ending June 30, 1989, the sums $90,693 and $91,885,
respectively, for the purpose of meeting any deficiencies which may be created
between the appropriated money as fixed by the 64th session of the legislature
and the requirements for salaries of the employees of the legislative counsel
bureau and of interim legislative operations, except those employees whose
salaries have been retained, to become effective July 1, 1987.

and beginning July 1, 1988, and ending June 30, 1989, the
sums $90,693 and $91,885, respectively, for the purpose of meeting any
deficiencies which may be created between the appropriated money as fixed by
the 64th session of the legislature and the requirements for salaries of the
employees of the legislative counsel bureau and of interim legislative
operations, except those employees whose salaries have been retained, to become
effective July 1, 1987.

2. The money appropriated for fiscal
years 1987-88 and 1988-89, in this section is available for both fiscal years
1987-88 and 1988-89, and may be transferred from one fiscal year to the other.
Any balance of the money appropriated in this section must be carried forward
for use in the next legislative session and does not revert to the state
general fund.

Sec. 6. 1. To
effect an increase in salaries and for any increased cost of retirement
contributions, there is hereby appropriated from the state general fund to the
state distributive school account in the state general fund for the fiscal
periods beginning July 1, 1987, and ending June 30, 1988, and beginning July 1,
1988, and ending June 30, 1989, the sums of $12,893,040 and $13,611,836,
respectively.

2. The sums appropriated by this section
must be apportioned by the department of education based on the number of
pupils in each county school district as other money in the state distributive
school account is apportioned. The allocations provided by this section are in
addition to any other allocations based on the number of pupils in each county
school district provided by the legislature for fiscal years 1987-88 and
1988-89.

Sec. 7. On or before May 31,
1988, the state board of examiners shall project the unappropriated balance of
the state general fund, including any amount designated as reserved for
stabilizing the budget, and the state distributive school account in the state
general fund, as of June 30, 1988, using all relevant information known to it.
The results of the projections of the state general fund and the state
distributive school account must be combined to form a single projection.

Sec. 8. 1. Based
on the projection required by section 7 of this act, the following amounts are
hereby contingently appropriated from the respective funds to provide increases
in salaries and any additional cost of retirement contributions for the
respective groups of employees, for the fiscal year 1988-89:

(a) If the projected balance is at least $57,000,000
but less than $60,500,000:

(1) To effect a salary increase of
approximately 1 percent:

(I) From the state general fund to the
state board of examiners for:

Classified
employees of the state ....................................................... $1,257,224

Unclassified
employees of the state .................................................. 192,184

Classified and
professional employees of the University of Nevada 1,044,303

(II) From the state highway fund to the
state board of examiners for positions in the department of motor vehicles and
public safety, public service commission of Nevada and
attorney generals office which are supported from that fund:

(III) From the
state general fund to the legislative fund for employees of the legislative
counsel bureau and interim legislative operations .................... $48,017

(2) From the
state general fund to the state distributive school account in the state
general fund............................................................................................... $4,673,397

This additional appropriation, if
any, must be apportioned in the same proportions per pupil as established by
the department of education for the various county school districts for fiscal
year 1988-89.

(b) If the projected
balance is at least $60,500,000 but less than $64,000,000:

(1) To effect
increases in salaries of approximately 1 1/2 percent:

(I) From the
state general fund to the state board of examiners for:

Classified
employees of the state ....................................................... $1,885,835

Unclassified
employees of the state .................................................. 288,277

Classified and
professional employees of the University of Nevada System 1,556,454

(II) From the
state highway fund to the state board of examiners for positions in the
department of motor vehicles and public safety, public service commission of
Nevada and attorney generals office which are supported from that fund:

(III) From
the state general fund to the legislative counsel bureau for employees of the
legislative counsel bureau and interim legislative operations ......... $72,025

(2) From the
state general fund to the state distributive school account in the state
general fund .............................................................................................. 7,010,095

This additional appropriation, if
any, must be apportioned in the same proportions per pupil as established by
the department of education for the various county school districts for fiscal
year 1988-1989.

(c) If the projected
balance is $64,000,000 but less than $67,500,000:

(1) To effect
increases in salaries of approximately 2 percent:

(I) From the
state general fund to the state board of examiners for:

Classified
employees of the state ....................................................... $2,514,447

Unclassified
employees of the state .................................................. 384,369

Classified and
professional employees of the University of Nevada System 2,088,606

(II) From the
state highway fund to the state board of examiners for positions in the
department of motor vehicles and public safety, public service commission of
Nevada and attorney generals office which are supported from that fund:

(III) From
the state general fund to the legislative counsel bureau for employees of the
legislative counsel bureau and interim legislative operations ......... $96,034

(2) From the
state general fund to the state distributive school account in the state
general fund .............................................................................................. 9,346,794

This additional appropriation, if
any, must be apportioned in the same proportions per pupil as established by
the department of education for the various county school districts for fiscal
year 1988-1989.

(d) If the projected
balance is $67,500,000 but less than $71,000,000:

(1) To effect
increases in salaries of approximately 2 1/2 percent:

(I) From the
state general fund to the state board of examiners for:

Classified
employees of the state ....................................................... $3,143,059

Unclassified
employees of the state .................................................. 480,462

Classified and
professional employees of the University of Nevada System 2,610,757

(II) From the
state highway fund to the state board of examiners for positions in the
department of motor vehicles and public safety, public service commission of
Nevada and attorney generals office which are supported from that fund:

(III) From
the state general fund to the legislative counsel bureau for employees of the
legislative counsel bureau and interim legislative operations ......... $120,042

(2) From the
state general fund to the state distributive school account in the state
general fund .............................................................................................. 11,683,492

The additional appropriation, if
any, must be apportioned in the same proportions per pupil as established by
the department of education for the various county school districts for fiscal
year 1988-1989.

(e) If the projected
balance is at least $71,000,000:

(1) To effect
increases in salaries of approximately 3 percent:

(I) From the
state general fund to the state board of examiners for:

Classified
employees of the state ....................................................... $3,771,671

Unclassified
employees of the state .................................................. 576,555

Classified and
professional employees of the University of Nevada System 3,132,909

(II) From the
state highway fund to the state board of examiners for positions in the
department of motor vehicles and public safety, public service commission of
Nevada and attorney generals office which are supported from that fund:

(2) From the
state general fund to the state distributive school account in the state
general fund .............................................................................................. $14,020,191

The additional appropriation, if
any, must be apportioned in the same proportions per pupil as established by
the department of education for the various county school districts for fiscal
year 1988-1989.

2. The state board of examiners shall
allocate the appropriations made to it, if any, among the respective
departments, commissions and agencies of the state, including the judicial
branch of government, in such proportion as to enable each to pay to its
classified, professional and unclassified employees, except any whose salaries
have been retained, the percentage of increase, if any, in their respective
salaries specified in this section.

3. If the total appropriations are not
sufficient to provide the specified increase, the appropriations must be
prorated and the increases in salaries reduced proportionately.

4. Any balance of the contingent
appropriations made by this section must not be committed for expenditure after
June 30, 1989, and reverts to the fund from which it was appropriated as soon
as all payments of money committed have been made, except that any balance of
the money appropriated to the legislative fund must be carried forward for use
in the next legislative session and does not revert to the state general fund.

Sec. 9. 1. Employees
filling the following positions in the classified service may receive annual
salaries not to exceed the following specified amounts, effective July 1, 1987:

As used in this section a senior psychiatrist (Range B) is a
psychiatrist eligible for certification by the American Board of Psychiatry. A
senior psychiatrist (Range C) is a psychiatrist certified by the American Board
of Psychiatry. A senior psychiatrist (Range A) is a Psychiatrist not so
certified or eligible.

2. The employees filling the positions
listed in subsection 1, except those whose salaries have been retained, may
receive an adjustment of salary effective July 1, 1988 if
the projected unappropriated balance in the state general fund, including any
amount designated as reserved for stabilizing the budget, and the state
distributive school account in the state general fund projected by the state
board of examiners results in:

effective July 1, 1988 if the projected unappropriated
balance in the state general fund, including any amount designated as reserved
for stabilizing the budget, and the state distributive school account in the
state general fund projected by the state board of examiners results in:

(a) A projected balance of at least $57,000,000
but less than $60,500,000, 1 percent.

(b) A projected balance of at least $60,500,000
but less than $64,000,000, 1 1/2 percent.

(c) A projected balance of at least $64,000,000
but less than $67,500,000, 2 percent.

(d) A projected balance of at least $67,500,000
but less than $71,000,000, 2 1/2 percent.

(e) A projected balance of at least $71,000,000,
3 percent.

________

CHAPTER 770, AB 882

Assembly Bill No.
882Committee on Taxation

CHAPTER 770

AN ACT relating to property taxes;
delaying the setting of tax rates by the Nevada tax commission and the due date
of the taxes and the first quarterly installments for fiscal year 1987-1988;
and providing other matters properly relating thereto.

[Approved June 26, 1987]

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN
SENATE

AND ASSEMBLY, DO ENACT AS FOLLOWS:

Section 1. Notwithstanding
the provisions of NRS 361.455, for fiscal year 1987-1988 the Nevada tax
commission shall meet on or before July 2, 1987, to set the tax rates for the
next succeeding year for all local governments whose rates would have been set
on June 25 but for the provisions of this section.

Sec. 2. Notwithstanding the
provisions of NRS 361.483, for fiscal year 1987-1988:

1. The taxes assessed upon the real
property tax roll and upon mobile homes as defined in NRS 361.561 are due on
August 10, 1987; and

2. If a person elects to pay in quarterly
installments, the first installment is due on August 10, 1987.

Sec. 3. This act becomes
effective upon passage and approval.

________

κ1987
Statutes of Nevada, Page 2047κ

CHAPTER 771, AB 804

Assembly Bill No.
804Committee on Labor and Management

CHAPTER 771

AN ACT relating to industrial insurance;
establishing a deemed wage for members of the Nevada legislature and for
employees of certain sole proprietors and partnerships for the purpose of
industrial insurance; and providing other matters properly relating thereto.

[Approved June 26, 1987]

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN
SENATE

AND ASSEMBLY, DO ENACT AS FOLLOWS:

Section 1. Chapter 616 of NRS is
hereby amended by adding thereto a new section to read as follows:

A member of the Nevada
legislature shall be deemed for the purposes of this chapter to be an employee
of the state during his term of office at the wage of $2,000 per month and is
entitled to the benefits of this chapter.

Sec. 2. NRS 616.015 is
hereby amended to read as follows:

616.015 As used in this chapter, unless
the context otherwise requires, the words and terms defined in NRS 616.020 to
616.120, inclusive, [and] sections
7 and 8 of [this act,]Assembly Bill No. 130 of this session, and sections 2 and 3 of
this act, have the meanings ascribed to them in those sections.

Sec. 3. NRS 616.085 is
hereby amended to read as follows:

616.085 1. Subcontractors
and their employees shall be deemed to be employees of the principal
contractor.

2. If the
subcontractor is a sole proprietor or partnership licensed pursuant to chapter
624 of NRS, the sole proprietor or partner shall be deemed to receive a wage of
$500 per month for the purposes of this chapter.

Sec. 4. Section 2 of this
act becomes effective at 12:01 a.m. on July 1, 1987.

________

CHAPTER 772, AB 796

Assembly Bill No.
796Committee on Elections

CHAPTER 772

AN ACT relating to elections; revising the
provisions governing absent ballots and registration to vote for certain
persons in the service of the United States or who reside outside the United
States; and providing other matters properly relating thereto.

[Approved June 26, 1987]

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN
SENATE

AND ASSEMBLY, DO ENACT AS FOLLOWS:

Section 1. Chapter 293 of NRS is
hereby amended by adding thereto the provisions set forth as sections 2 and 3
of this act.

1. Any registered
voter of this state who resides outside the United States, its territories or
possessions may use the form provided by the Federal Government as a special
absent ballot for a general election if the voter:

(a) Requests an absent
ballot and the request is received by the county clerk not later than 30 days
before the election; and

(b) Does not receive the
absent ballot.

2. The special
absent ballot must be used only for the offices of President and Vice President
of the United States, United States Senator and Representative in Congress. The
ballot must allow the registered voter to vote by writing in his choice of a
political party for each office, the name of a candidate for each office, or
the name of the person whom the voter prefers for each office.

3. The special
absent ballot must not be counted if:

(a) It is submitted from
any location within the United States, its territories or possessions;

(b) The county clerk
receives the request for an absent ballot less than 30 days before the general
election; or

(c) The county clerk
receives the absent ballot on or before the date of the general election.

Sec. 3. Notwithstanding any other provisions of Title 24 of NRS:

1. Any elector of
this state who resides outside the United States, its territories or
possessions may use the form provided by the Federal Government to register to
vote in this state.

2. The county
clerk shall not register a voter who submits the form provided by the Federal
Government from any location within the United States, its territories or
possessions.

________

CHAPTER 773, SB 272

Senate Bill No.
272Committee on Judiciary

CHAPTER 773

AN ACT relating to adoption; revising
various requirements relating to adoption; authorizing the grant of a right of
visitation to certain relatives of an adopted child; prohibiting the payment of
money to a natural parent in return for the adoption of the child under certain
circumstances; declaring invalid any consent to adoption signed by a mother
within 72 hours after birth of a child; making technical and administrative
changes; providing penalties; and providing other matters properly relating
thereto.

[Approved June 26, 1987]

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN
SENATE

AND ASSEMBLY, DO ENACT AS FOLLOWS:

Section 1. Chapter 127 of NRS is
hereby amended by adding thereto the provisions set forth as sections 2 to 7,
inclusive, of this act.

Sec. 2. Notice of the filing of a petition for the adoption of a child
must be provided to the legal custodian or guardian of the child if that
custodian or guardian is a person other than the natural parent of the child.

Sec. 3. The petitioners shall file with the court, within 15 days
after the petition is filed or 5 months after the child begins to live in their
home, whichever is later, an affidavit executed by them and their attorney
setting forth all fees, donations and expenses paid by them in furtherance of
the adoption. A copy of the affidavit must be sent to the welfare division of
the department of human resources. If one petitioner or the spouse of a
petitioner is related to the child within the third degree of consanguinity,
the court may waive the filing of the affidavit.

Sec. 4. 1. In a proceeding for the adoption of a child,
the court may grant a reasonable right to visit to certain relatives of the
child only if a similar right had been granted previously pursuant to NRS
123.123.

2. The court may
not grant a right to visit the child to any person other than as specified in
subsection 1.

Sec. 5. (Deleted by
amendment.)

Sec. 6. 1. Except as otherwise provided in subsection 3,
it is unlawful for any person to pay or offer to pay money or anything of value
to the natural parent of a child in return for the natural parents placement
of the child for adoption or consent to or cooperation in the adoption of the
child.

2. It is unlawful
for any person to receive payment for medical and other necessary expenses
related to the birth of a child from a prospective adoptive parent with the
intent of not consenting to or completing the adoption of the child.

3. A person may
pay the medical and other necessary living expenses related to the birth of a
child of another as an act of charity so long as the payment is not contingent
upon the natural parents placement of the child for adoption or consent to or
cooperation in the adoption of the child.

4. This section
does not prohibit a natural parent from refusing to place a child for adoption
after its birth.

5. The provisions
of this section do not apply if a woman enters into a lawful contract to act as
a surrogate, be inseminated and give birth to the child of a man who is not her
husband.

Sec. 7. Any person who violates the provisions of:

1. Subsection 1 of
section 6 of this act shall be punished by imprisonment in the state prison for
not less than 1 year nor more than 6 years, or by a fine of not more than
$5,000, or by both fine and imprisonment.

2. Subsection 2 of
section 6 of this act is guilty of a gross misdemeanor.

Sec. 8. NRS 127.005 is
hereby amended to read as follows:

127.005 The provisions of NRS 127.010 to
127.186, inclusive, and sections 2, 3 and 4 of this act,
govern the adoption of minor children, and the provisions of NRS 127.190
to 127.210, inclusive, and the provisions of NRS 127.010 to 127.186, inclusive,
and sections 2, 3 and 4 of this act, where not
inconsistent with the provisions of NRS 127.190 to 127.210, inclusive, govern
the adoption of [adult persons.]adults.

127.053 No consent to a specific adoption
executed in this state, or executed outside this state for use in this state, [shall be]is valid
unless it:

1. Identifies the
child to be adopted by name, if any, gender and date of birth.

2. Is in
writing and signed by the person [or persons]
consenting to the adoption as required in this
chapter.

[2.]3. Is acknowledged by the person [or persons] consenting and signing the
same in the manner and form [as]
required for conveyances of real property by NRS 111.240 to 111.305, inclusive.

[3.]4. Contains, at the time of execution, the
name [or names] of the person [or persons] to whom consent to adopt the
child is given.

[4.]5. Is attested by at least two competent,
disinterested witnesses who subscribe their names to the consent in the
presence of the person [or persons]
consenting. If neither the petitioner or the spouse of a
petitioner is related to the child within the third degree of consanguinity,
then one of the witnesses must be a social worker employed by:

(a) The welfare division
of the department of human resources;

(b) An agency licensed in
this state to place children for adoption; or

(c) A comparable state or
county agency of another state.

Sec. 10. NRS 127.057 is
hereby amended to read as follows:

127.057 1. Any person to
whom a consent to adoption executed in this state or executed outside this
state for use in this state is delivered shall, within 48 hours after receipt
of [such]the
executed consent to adoption, furnish a true copy thereof to the welfare
division of the department of human resources, together with a report of the
permanent address of the person [or persons]
in whose favor [such]the consent was executed.

2. Any person
recommending in his professional or occupational capacity, the placement of a
child for adoption in this state shall immediately notify the welfare division
of the impending adoption.

3. All information received by the
welfare division pursuant to the provisions of this section [shall be confidential information, and shall]is confidential and must be protected from
disclosure in the same manner that information concerning recipients of public
assistance is protected under NRS 422.290.

[3.]4. Any person who violates any of the
provisions of this section is guilty of a misdemeanor.

Sec. 11. NRS 127.070 is
hereby amended to read as follows:

127.070 1. All releases for
and consents to adoption executed by the mother before the birth of a child or within 72 hours after the birth of a child are
invalid.

2. A release for or consent to adoption may
be executed by the father before the birth of the child if the father is not
married to the mother. A release executed by the father becomes invalid if:

(a) The father of the child marries the mother
of the child before the child is born;

(b) The mother of the child does not execute a
release for or consent to adoption of the child within 6 months after the birth
of the child; or

(c) No petition for adoption of the child has
been filed within 2 years after the birth of the child.

Sec. 12. NRS 127.110 is
hereby amended to read as follows:

127.110 1. A petition for
adoption of a child who currently resides in the home of
the petitioners may be filed at any time after the child has lived in
the home [of the petitioners for a period of]for 30 days.

2. The petition for adoption [shall]must state,
in substance, the following:

(a) The full name and age of the petitioners and
the period [of time] the
petitioners have resided in the State of Nevada [prior
to]before the filing of the
petition.

(b) The age of the child sought to be adopted
and the period [of time] that the
child has lived in the home of petitioners [prior
to]before the filing of the petition.

(c) That it is the desire of the petitioners
that the relationship of parent and child be established between them and [such]the child.

(d) Their desire that the name of the child be
changed, together with the new name desired.

(e) That the petitioners are fit and proper
persons to have the care and custody of the child.

(f) That they are financially able to provide
for the child.

(g) That there has been a full compliance with
the law in regard to consent to adoption.

(h) That there has been a full compliance with
NRS 127.220 to 127.310, inclusive.

3. No order of adoption [shall]may be
entered unless there has been full compliance with the
provisions of NRS 127.220 to 127.310, inclusive . [, has been fully complied with.]

Sec. 13. NRS 127.220 is
hereby amended to read as follows:

127.220 As used in NRS 127.230 to
127.310, inclusive, [person]and sections 6 and 7 of this act, unless the context otherwise
requires:

1. Arrange the
placement of a child means to make preparations for or bring about any
agreement or understanding concerning the adoption of a child.

2. Child-placing
agency means the welfare division of the department of human resources or a
nonprofit corporation organized under NRS 81.290 to 81.340, inclusive, and
licensed by the welfare division to place children for adoption or permanent
free care.

3. Person includes
a hospital.

4. Recommend the
placement of a child means to suggest to a licensed child-placing agency that
a prospective adoptive parent be allowed to adopt a specific child, born or in
utero.

Sec. 14. NRS 127.230 is
hereby amended to read as follows:

127.230 1. The welfare
division of the department of human resources, with the approval of the state
welfare board, shall:

(c) Adopt regulations
establishing the procedure to be used in placing children for adoption,
including adoptions in which the natural parent or parents have limited
knowledge of the prospective adoptive parent or parents.

2. All licensed child-placing agencies
shall conform to the standards established and the rules prescribed pursuant to
subsection 1.

Sec. 15. NRS 127.280 is
hereby amended to read as follows:

127.280 1. [No child may]A
child may not be placed in the home of prospective adoptive parents for
the 30-day residence in that home which is required before the filing of a
petition for adoption, except where a child and one of the prospective adoptive
parents are related within the third degree of consanguinity, unless the
welfare division of the department of human resources first receives written
notice of the proposed placement from:

(a) The prospective adoptive parents of the
child;

(b) The person recommending the placement; or

(c) A [licensed]
child-placing agency,

and the investigation required by the provisions of this
section has been completed.

2. If the placement is to be made by a [licensed] child-placing agency, the
welfare division shall make no investigation and shall retain the written
notice for informational purposes only.

3. If the placement is recommended by a
person other than a [licensed] child-placing
agency, the welfare division shall, within 60 days after receipt of the written
notice, complete an investigation of the medical, mental, financial and moral
backgrounds of the prospective adoptive parents to determine the suitability of
the home for placement of the child for adoption. The investigation must also
embrace any other relevant factor relating to the qualifications of the
prospective adoptive parents and may be a substitute for the investigation
required to be conducted by the welfare division on behalf of the court when a
petition for adoption is pending, if the petition for adoption is filed within
6 months after the completion of the investigation required by this subsection.

4. Pending completion of the required
investigation, the child must be [retained]:

(a) Retained by
the natural parent [or parents]; or

(b) Voluntarily placed by
the natural parent with the welfare division or relinquished to the
welfare division and placed by the welfare division in a foster home licensed
by it ,

until a determination is made by the welfare division
concerning the suitability of the prospective adoptive parents.

5. Upon completion of the investigation,
the welfare division shall forthwith inform the person recommending the
placement and the prospective adoptive parents of the welfare divisions
decision to approve or deny the placement.

deny the placement. If, in the opinion of the welfare
division, the prospective adoptive home is:

(a) Suitable, [the
child must be relinquished to the welfare division, if not]the natural parent must execute a consent to a specific
adoption pursuant to NRS 127.053, if not previously executed and if the child
has not been relinquished pursuant to the provisions of subsection 4, [for placement and adoption]and then the child may be placed in the home of the
prospective adoptive parents [.]for the purposes of adoption.

(b) Unsuitable or detrimental to the interest of
the child, the welfare division shall file an application in the district court
for an order prohibiting the placement. If the court determines that the
placement should be prohibited, the court may nullify the written consent [or consents] to the specific adoption
and order the return of the child to care and control of the parent [or parents] who executed the consent,
but if the parental rights of the parent [or
parents] have been terminated by a relinquishment or a final
order of a court of competent jurisdiction or if the parent [or parents do]does
not wish to accept the child, then the court may order the placement of the
child with the welfare division or with any licensed child-placement agency for
adoption.

6. Whenever the welfare division believes
that anyone has violated or is about to violate any of the provisions of this
chapter, in addition to any other penalty or remedy provided:

(a) The welfare division may petition the
appropriate district court for an order to restrain and enjoin the violation or
threatened violation of any of the provisions of this chapter, or to compel
compliance with the provisions of this chapter; and

(b) The court [,
thereupon,] shall, if a child has been or was about to be placed
in a prospective adoptive home in violation of the provisions of this chapter:

(1) Prohibit the placement if the child
was about to be so placed, or order the removal of the child if the child was
so placed within 6 months before the filing of the welfare divisions petition,
and proceed pursuant to [the discretionary
placement power of]paragraph (b)of subsection 5; or

(2) Proceed pursuant to [the discretionary placement power of]paragraph (b) of subsection 5 in all other cases if the
court determines that it is in the best interest of the child that the child
should be removed.

7. Whenever the welfare division believes
that a person has received for the purposes of adoption or permanent free care
a child not related by blood, and when the written notice required by
subsection 1 has not been received, and the welfare division does not proceed
pursuant to subsection 6, the welfare division shall make an investigation.
Upon completion of the investigation, if the home is found suitable for the
child, the prospective adoptive parents must be allowed 6 months from the date
of completion of the investigation to file a petition for adoption. If a
petition for adoption is not filed within that time a license
as a foster home [license] must
thereafter be issued by the welfare division if the home meets established
standards. If, in the opinion of the welfare division,
the placement is detrimental to the interest of the child, the welfare division
shall file an application with the district court for an order for the removal
of the child from the home.

in the opinion of the welfare division, the placement is
detrimental to the interest of the child, the welfare division shall file an
application with the district court for an order for the removal of the child
from the home. If the court determines that the child should be removed, the
court shall proceed pursuant to [the
discretionary placement power of]paragraph
(b) of subsection 5.

8. Any person who places, accepts
placements of, or aids, abets or counsels the placement of any child in
violation of [the placement provisions of]
this section is guilty of a gross misdemeanor.

________

CHAPTER 774, SB 341

Senate Bill No.
341Senator OConnell

CHAPTER 774

AN ACT relating to the administration of
public finances; requiring the director of the department of administration to
establish a uniform system of internal accounting and administrative control
for certain state agencies and officers; and providing other matters properly
relating thereto.

[Approved June 26, 1987]

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN
SENATE

AND ASSEMBLY, DO ENACT AS FOLLOWS:

Section 1. 1. The
legislature declares that the purpose of this act is to:

(a) Establish effective controls on the internal
finances of this state;

(b) Establish a means of monitoring those
controls;

(c) Inhibit the waste of state resources; and

(d) Increase the financial assets of the state.

2. The legislature intends the provisions
of this act to be implemented with existing resources and appropriations.

Sec. 2. Title 31 of NRS is
hereby amended by adding thereto a new chapter to consist of the provisions set
forth as sections 3 to 6, inclusive, of this act.

Sec. 3. As used in this
chapter, unless the context otherwise requires:

1. Agency means every agency,
department, division, board, commission or similar body, or elected officer, of
the executive branch of the state, except:

(a) A board or commission created by the provisions
of chapters 623 to 625, inclusive, 628 to 644, inclusive, 654 and 656 of NRS.

3. Internal accounting and
administrative control means a method through which agencies can safeguard
assets, check the accuracy and reliability of their accounting information,
promote efficient operations and encourage adherence to prescribed managerial
policies.

Sec. 4. 1. The
director, in consultation with the state controller and legislative auditor,
shall adopt a uniform system of internal accounting and administrative control
for agencies. The elements of the system must include, without limitation:

(a) A plan of organization which provides for a
segregation of duties appropriate to safeguard the assets of the agency;

(b) A plan which limits access to assets of the
agency to persons who need the assets to perform their assigned duties;

(c) Procedures for authorizations and
recordkeeping which effectively control accounting of assets, liabilities,
revenues and expenses;

(d) A system of practices to be followed in the
performance of the duties and functions of each agency; and

(e) An effective system of internal review.

2. The director, in consultation with the
state controller and legislative auditor, may modify the system whenever he
considers it necessary.

3. Each agency shall develop written
procedures to carry out the system of internal accounting and administrative
control adopted pursuant to this section.

Sec. 5. NRS 218.830 is
hereby amended to read as follows:

218.830 1. The legislative
auditor shall prepare a biennial report for the governor and members of the
legislature, and submit the report before December 31 of each even-numbered
year. Copies of the report must be filed in the office of the secretary of
state.

2. The biennial report must contain,
among other things:

(a) Copies of, or the substance of, reports made
to the various agencies of the state and a summary of changes made in the
system of accounts and records thereof ; [.]

(b) A list of those
agencies on which audit reports were issued during the biennium which had not
carried out a system of internal accounting and administrative control pursuant
to section 4 of this act; and

(c) Specific
recommendations to the legislature for the amendment of existing laws or the
enactment of new laws designed to improve the functioning of the agencies of
the state.

Sec. 6. NRS 353.325 is
hereby amended to read as follows:

353.325 Each state agency, within 10 days
after receiving an audit report pertaining to [such]that agency, including a
management letter and the agencys reply, shall submit one copy of [such]the audit
report to:

1. The chief of the budget division of
the department of administration.

Sec. 7. The director of the
department of administration shall adopt an initial system of internal
accounting and administrative control and transmit copies to the affected state
agencies on or before January 1, 1988.

________

CHAPTER 775, SB 134

Senate Bill No.
134Committee on Commerce and Labor

CHAPTER 775

AN ACT relating to homeopathic medicine;
making various changes relating to the practice of homeopathic medicine;
providing a penalty; and providing other matters properly relating thereto.

[Approved June 26, 1987]

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN
SENATE

AND ASSEMBLY, DO ENACT AS FOLLOWS:

Section 1. (Deleted by
amendment.)

Secs. 2-9. (Deleted by
amendment.)

Sec. 10. NRS 630A.040 is
hereby amended to read as follows:

630A.040 Homeopathic medicine or
homeopathy means a system of medicine employing substances of animal,
vegetable, chemical or mineral origin, including nosodes and sarcodes, which
are:

1. Given in micro-dosage, except that
sarcodes may be given in macro-dosage; [and]

2. Prepared according to homeopathic
pharmacology by which the formulation of homeopathic preparations is accomplished
by the methods of Hahnemannian dilution and succussion, magnetically energized
geometric patterns , [(]
applicable in potencies above 30X as defined in the official Homeopathic
Pharmacopoeia of the United States , [)] or Korsakoffian [,]; and

3. Prescribed by
homeopathic physicians according to the medicines and dosages in the
Homeopathic Pharmacopoeia of the United States,

in accordance with the principle that a substance which
produces symptoms in a healthy person can eliminate those symptoms in an ill
person, resulting in the elimination and prevention of illness utilizing
classical methodology and noninvasive electrodiagnosis.

Sec. 11. NRS 630A.050 is
hereby amended to read as follows:

630A.050 Homeopathic physician means a
person who [:

1. Is a graduate
of an academic program approved by the board or is qualified to perform
homeopathic medical services by reason of general education, practical training
and experience determined by the board to be satisfactory;]has:

1. Complied with
all of the requirements set forth in this chapter and the regulations adopted
by the board for the practice of homeopathic medicine; and

(b) A medical officer of the armed services or a
medical officer of any division or department of the United States in the discharge
of his official duties.

(c) Licensed nurses in the discharge of their
duties as nurses.

(d) Homeopathic physicians who are called into
this state, other than on a regular basis, for consultation or assistance to
any physician licensed in this state, and who are legally qualified to practice
in the state or country where they reside.

2. This chapter does not repeal or affect
any statute of Nevada regulating or affecting any other healing art.

3. This chapter does not prohibit:

(a) Gratuitous services of a person in case of
emergency.

(b) The domestic administration of family
remedies.

4. Nothing in this
chapter shall be construed as authorizing a homeopathic physician to practice
medicine, including allopathic medicine, except as provided in NRS 630A.040.

Sec. 12. NRS 630A.110 is
hereby amended to read as follows:

630A.110 1. Four members of
the board must be persons who are licensed to
practice allopathic or osteopathic medicine in any state or country, the
District of Columbia or a territory or possession of the United States , [who]
have been engaged in the practice of homeopathic medicine in this state for a
period of more than 2 years preceding their respective appointments, are
actually engaged in the practice of homeopathic medicine in this state and are
residents of the state.

2. The remaining members must be [residents of Nevada]persons who:

(a) Are not licensed in any state to practice
any healing art;

(b) Are not actively engaged in the
administration of any medical facility or facility for the dependent as defined
in chapter 449 of NRS; [and]

(c) Do not have a pecuniary interest in any
matter pertaining to such a facility, except as a patient or potential patient [.]; and

(d) Have resided in this
state for at least 5 years.

3. The members of the board must be
selected without regard to their individual political beliefs.

4. As used in this section, healing art
means any system, treatment, operation, diagnosis, prescription or practice for
the ascertainment, cure, relief, palliation, adjustment or correction of any human
disease, ailment, deformity, injury, or unhealthy or abnormal physical or
mental condition for the practice of which long periods of specialized
education and training and a degree of specialized knowledge of an intellectual
as well as physical nature are required.

630A.120 1. Upon expiration
of his term of office, a member shall continue to serve until a person
qualified under this chapter is appointed as his successor.

2. [If a
member fails to attend meetings of the board or a member fails to attend to the
business of the board, as determined necessary in the discretion of the board,
the board shall so notify the governor, and the]A member of the board may be removed by the governor for good
cause. The governor shall appoint a person qualified under this chapter
to replace [the]a removed member for the remainder of the unexpired
term.

Sec. 14. NRS 630A.130 is
hereby amended to read as follows:

630A.130 Before entering upon the duties
of his office, each member of the board shall take:

1. The constitutional oath or affirmation of office [.]; and

2. An oath or
affirmation that he is legally qualified to serve on the board.

Sec. 15. NRS 630A.140 is
hereby amended to read as follows:

630A.140 1. The board shall
elect from its members a president, a vice president and a secretary-treasurer.
The officers of the board [shall]
hold their respective offices during its pleasure.

2. The board shall receive through its [secretary]secretary-treasurer
applications for the certificates issued under this chapter.

3. The secretary-treasurer [shall]is
entitled to receive a salary, in addition to the
salary paid pursuant to NRS 630A.160, the amount of which must be
determined by the board.

Sec. 16. NRS 630A.160 is
hereby amended to read as follows:

630A.160 1. Out of the money
coming into the possession of the board, each member of the board is entitled
to receive:

(a) A salary of not more than $60 per day, as
fixed by the board, while engaged in the business of the board.

(b) Reimbursement for his actual and necessary
expenses incurred in the performance of his duties.

2. Expenses of the
board and the expenses and salaries of the members of the board must be
paid from the fees received by the board under the provisions of this chapter,
and no part of the salaries or expenses of the members
of the board may be paid out of the state general fund.

3. All money received by the board must
be deposited in [banks and savings and loan associations
in this state, and must be paid out on its order for its expenses and the
expenses of the members.]financial
institutions in this state which are federally insured.

Sec. 17. NRS 630A.190 is
hereby amended to read as follows:

630A.190 The board may:

1. Maintain offices in as many localities
in the state as it finds necessary to carry out the provisions of this chapter.

630A.210 1. The board may hold hearings and conduct investigations
relating to its duties under this chapter and take evidence on any matter under
inquiry before the board. The secretary-treasurer of the board or, in his
absence, any member of the board may administer oaths to any witness appearing
before the board. The [secretary]secretary-treasurer or president of the board may
issue subpenas to compel the attendance of witnesses and the production of
books [and papers.], medical records, X-ray photographs and other papers. The
secretary-treasurer, president or other officer of the board shall sign the
subpena on behalf of the board.

2. If any [witness
refuses to attend or testify or produce any books and papers as required by the
subpena, the secretary]person fails to
comply with a subpena issued by the board, the secretary-treasurer or
president of the board may [report to the district
court by petition, setting forth that:

(a) Due notice has been
given to the time and place of attendance of the witness or the production of
the books and papers;

(b) The witness has been
subpenaed by the board pursuant to this section; and

(c) The witness has
failed or refused to attend or produce the books and papers required by the
subpena before the board which is named in the subpena, or has refused to
answer questions propounded to him,

and asking]petition the district court for an order of the court
compelling [the witness to attend and testify or
produce the books and papers before the board.]compliance with the subpena.

3. Upon such a petition, the court shall
enter an order directing the [witness]person subpenaed to appear before the court at a
time and place to be fixed by the court in its order, the time to be not more
than 10 days from the date of the order, and then and there show cause why he
has not [attended or testified or produced the
books or papers before the board.]complied
with the subpena. A certified copy of the order must be served upon [the witness.]that
person.

4. If it appears to be the court that the
subpena was regularly issued by the board, the court shall enter an order [that the witness appear before the board at the time
and place fixed in the order and testify or produce the required books or papers,]compelling compliance with the subpena, and upon
failure to obey the order the [witness shall]person must be dealt with as for contempt of
court.

Sec. 19. NRS 630A.230 is
hereby amended to read as follows:

630A.230 1. Every person
desiring to practice homeopathic medicine [shall,]must, before beginning to practice, procure from
the board a license authorizing such practice.

2. A license may be issued to any person
who:

(a) Is a citizen of the United States or is
lawfully entitled to remain and work in the United States;

(b) Has received the
degree of Doctor of Medicine or Doctor of Osteopathic Medicine from the school
he attended during the 2 years immediately preceding the granting of the
degree;

(c) Is licensed to
practice allopathic or osteopathic medicine in any state or country, the
District of Columbia or a territory or possession of the United States;

[(c)](d) Has completed [6
months]1 year of postgraduate
training in allopathic or osteopathic medicine approved
by the board; [and

(d)](e) Has passed all oral or written examinations required
by the board or this chapter; and

(f) Meets
additional requirements established by the board.

Sec. 20. NRS 630A.240 is
hereby amended to read as follows:

630A.240 1. [The]An applicant
for a license to practice homeopathic medicine who is a graduate of a medical
school located in the United States or Canada shall submit to the board,
through its [secretary:

(a) Proof of graduation
from a medical school recognized as reputable by the board.

(b) An affidavit that the
applicant is the person named in the proof of graduation and that it was
procured without fraud or misrepresentation of any kind.

(c) A certificate or
other document proving a period of 6 months of postgraduate training, which
training must be approved by the board.]secretary-treasurer,
proof that he has received:

(a) The degree of Doctor
of Medicine from a medical school which at the time of his graduation was
accredited by the Liaison Committee on Medical Education or the Committee for the
Accreditation of Canadian Medical Schools, or the degree of Doctor of
Osteopathic Medicine from an osteopathic school which at the time of his
graduation was accredited by the Bureau of Professional Education of the
American Osteopathic Association;

(b) One year of
postgraduate training in allopathic or osteopathic medicine approved by the
board; and

(c) Six months of
postgraduate training in allopathic or osteopathic medicine approved by the
board; and

2. In addition to the [affidavits of] proofs required by
subsection 1, the board may take such further evidence and require such other
documents or proof of qualification as in its discretion may be deemed proper.

3. If it appears that the applicant is
not of good moral character or reputation or that any credential submitted is
false, the applicant may be rejected.

Sec. 21. NRS 630A.250 is
hereby amended to read as follows:

630A.250 1. [Before issuance of]If required by the board, an applicant for a license to
practice homeopathic medicine [, the applicant
who is otherwise eligible for licensure in this state and has paid the fee and
presented the credentials specified in NRS 630A.240] shall appear
personally and pass [a satisfactory written
examination as to qualifications therefor.

2. The examination
must be fair and impartial, practical in character and the questions must be
designed to discover the applicants fitness.

3.]an oral examination.

2. The
board may employ specialists and other [professional]
consultants or examining services in conducting [the
examination.]any examination required by
the board.

630A.260 1. If an applicant
fails in a first examination, he may be re-examined after not less than 6
months.

2. If he fails in a second examination,
he [is not thereafter entitled to another
examination]may not be re-examined within
less than 1 year after the date of the second examination . [, and prior thereto]Before taking a third examination, he shall
furnish proof [to the board of further
postgraduate training following the second examination]
satisfactory to the board [.]of 1 year of additional training in homeopathy after the
second examination.

3. If an applicant
fails three consecutive examinations, he must show the board by clear and
convincing evidence that extraordinary circumstances justify permitting him to
be re-examined again.

Sec. 23. NRS 630A.270 is
hereby amended to read as follows:

630A.270 1. [The]An
applicant for a license to practice homeopathic medicine who is a graduate of a
foreign medical school shall submit to the board through its [secretary]secretary-treasurer
proof that he:

(a) Is a citizen of the United States, or that
he is lawfully entitled to remain and work in the United States;

(b) Has received the degree of Doctor of [Homeopathic] Medicine or its equivalent,
as determined by the board, from a foreign medical school recognized by the
Educational Commission for Foreign Medical Graduates;

(c) Has completed 3 years of postgraduate
training satisfactory to the board; [and]

(d) Has [passed,
with a grade acceptable to the board, an examination designated by the board.]completed an additional 6 months of postgraduate
training in homeopathic medicine;

(e) Has received the
standard certificate of the Educational Commission for Foreign Medical
Graduates; and

(f) Has passed all parts
of the Federation Licensing Examination, or has received a written statement
from the Educational Commission for Foreign Medical Graduates that he has
passed the examination given by the Commission.

2. In addition to the proofs required by
subsection 1, the board may take such further evidence and require such further
proof of the professional and moral qualifications of the applicant as in its
discretion may be deemed proper.

3. If the applicant is a diplomate of an
approved specialty board recognized by this board, the requirements of
paragraph (c) and (d) of subsection 1 may be waived by the board.

4. Before issuance of a license to
practice homeopathic medicine, the applicant who presents the proof required by
subsection 1 shall appear personally before the board and satisfactorily pass a
written or oral examination, or both, as to his qualifications to practice
homeopathic medicine.

630A.290 1. The
board may deny an application for a license to practice homeopathic medicine
for any violation of the provisions of this chapter or the regulations adopted
by the board.

2. The board shall
notify an applicant of any deficiency which prevents any further action on his
application or results in the denial of the application. The applicant may
respond in writing to the board concerning any deficiency and, if he does so,
the board shall respond in writing to the contentions of the applicant.

3. An unsuccessful
applicant may appeal to the district court to review the action of the board
within 30 days after the date of the rejection of his application by the board.
Upon appeal the applicant has the burden to show that the action of the board
is erroneous or unlawful.

4. The
board shall maintain records pertaining to applicants to whom licenses have
been issued or denied. The records must be open to the
public and must contain:

[1.](a) The name [and
address] of each applicant.

[2.](b) The name of the school granting the diploma.

[3.] (c) The date of the diploma.

[4.] (d) The date of issuance or denial of the
license.

[5. Any
other information required by the board.]

(e) The business address
of the applicant.

Sec. 25. NRS 630A.300 is hereby
amended to read as follows:

630A.300 All licenses issued by the board
must bear its seal and the signatures of its president and [secretary. A license authorizes the person to whom it
is issued to practice homeopathic medicine.]secretary-treasurer.

Sec. 26. NRS 630A.310 is
hereby amended to read as follows:

630A.310 1. The
board may:

[1.](a) Issue a temporary license, to be effective
not more than 6 months after issuance, to any homeopathic physician who is
eligible for a permanent license in this state and who also is of good moral
character and reputation. The purpose of the temporary license is to enable an
eligible homeopathic physician to serve as a substitute for some other
homeopathic physician who is licensed to practice homeopathic medicine in this
state, and who is absent from his practice for reasons deemed sufficient by the
board. A temporary license issued under the provisions of this [subsection]paragraph
is not renewable . [and
may be revoked at any time for reasons deemed sufficient by the board.

2.](b) Issue a special license to a licensed
homeopathic physician of [an adjoining]another state to come into Nevada to care for or
assist in the treatment of his own patients in association with a physician
licensed in this state . [who
must have the primary care of the patients.] A special license
issued under the provisions of this [subsection
may be revoked at any time for reasons deemed sufficient by the board.]paragraph is limited to the care of a specific patient.

(c) Issue a restricted
license for a specified period if the board determines the applicant needs
supervision or restriction.

2. A person who is
licensed pursuant to paragraph (a), (b) or (c) of subsection 1 shall be deemed
to have given his consent to the revocation of the license at any time by the
board for any of the grounds provided in NRS 630A.340 to 630A.380, inclusive.

Sec. 27. NRS 630A.320 is
hereby amended to read as follows:

630A.320 1. The board may
issue to a qualified applicant a limited license to practice homeopathic
medicine as a resident homeopathic physician in a postgraduate program of
clinical training if:

(a) The applicant is a graduate of an accredited
medical school in the United States or Canada or is a graduate of a foreign
medical school recognized by the Educational Commission for Foreign Medical
Graduates and:

(1) Is a citizen of the United States or
is lawfully entitled to remain and work in the United States; and

(2) Has completed 1 year of supervised
clinical training approved by the board.

(b) The board approves the program of clinical
training, and if the medical school or other institution sponsoring the program
provides the board with written confirmation that the applicant has been
appointed to a position in the program.

2. In addition to the requirements of
subsection 1, an applicant who is a graduate of a foreign medical school must have
received the standard certificate of the Educational Commission for Foreign
Medical Graduates.

3. The board may issue this limited
license for not more than 1 year, but may renew the license.

4. The holder of this limited license may
practice homeopathic medicine only in connection with his duties as a resident
physician and shall not engage in the private practice of homeopathic medicine.

5. A limited license granted under this
section may be revoked by the board at any time for any of the grounds set
forth in NRS 630A.340 [.]to 630A.380, inclusive.

Sec. 28. NRS 630A.330 is
hereby amended to read as follows:

630A.330 1. Except as
provided in subsection 4, each applicant for a license to practice homeopathic
medicine must:

(a) Pay a fee of $300; and

(b) Pay the cost of obtaining such further evidence
and proof of qualifications as the board may require pursuant to subsection 2
of NRS 630A.240.

2. Each applicant who fails an
examination and who is permitted to be re-examined must pay a fee not to exceed
$200 for each re-examination.

3. If an applicant does not appear for
examination, for any reason deemed sufficient by the board, the board may, upon
request, refund a portion of the application fee not to exceed [$100.]50 percent
of the fee. There must be no refund of the application fee if an
applicant appears for examination.

4. Each applicant for a license issued
under the provisions of NRS 630A.310 or 630A.320 [,] must
pay a fee not to exceed $75, as determined by the board, and must pay a fee of
$25 for each renewal of the license.

630A.310 or 630A.320 [,]
must pay a fee not to exceed $75, as determined by the board, and must pay a
fee of $25 for each renewal of the license.

5. The fee for the renewal of a license,
as determined by the board, must not exceed $200 per year and must be collected
for the year in which a [homeopathic]
physician is licensed.

6. The fee for the restoration of a
suspended license is twice the amount of the fee for the renewal of a license
at the time of the restoration of the license.

Sec. 29. NRS 630A.340 is
hereby amended to read as follows:

630A.340 The following
acts, among others, constitute grounds for initiating disciplinary
action [under this chapter:]or denying the issuance of a license:

1. Unprofessional conduct.

2. Conviction of:

(a) A violation of any federal or state law
regulating the possession, distribution or use of any controlled substance as
defined in chapter 453 of NRS or dangerous drug as defined in chapter 454 of
NRS ; [.]

(b) A felony ; [.]

(c) Any offense involving moral turpitude [.]; or

(d) Any offense relating
to the practice of homeopathic medicine or the ability to practice homeopathic
medicine.

A plea of nolo contendere to any
offense listed in paragraph (a), (b), (c) or (d) shall be deemed a conviction.

3. Suspension , [or] revocation ,
modification or limitation of [the]a license to practice any type of medicine by any
other jurisdiction.

4. Surrender of a
license to practice any type of medicine or the discontinuance of the practice
of medicine while under investigation by any licensing authority, medical
facility, facility for the dependent, branch of the Armed Forces of the United
States, insurance company, agency of the Federal Government or employer.

5. Gross or
repeated malpractice, which may be evidenced by claims of malpractice settled
against a practitioner.

[5.]6. Professional incompetence.

Sec. 30. NRS 630A.350 is
hereby amended to read as follows:

630A.350 The following acts, among
others, constitute [unprofessional conduct:]grounds for initiating disciplinary action or denying
the issuance of a license:

1. Willfully making a false or fraudulent
statement or submitting a forged or false document in applying for a license to
practice homeopathic medicine.

2. Willfully representing with the
purpose of obtaining compensation or other advantages for himself or for any
other person that a manifestly incurable disease or injury or other manifestly
incurable condition can be permanently cured.

3. Obtaining,
maintaining or renewing, or attempting to obtain, maintain or renew a license
to practice homeopathic medicine by bribery, fraud or misrepresentation or by any false, misleading, inaccurate or
incomplete statement.

misrepresentation or by any false,
misleading, inaccurate or incomplete statement.

4. Advertising
the practice of homeopathic medicine in a false,
deceptive or misleading manner . [which does not conform to guidelines established by
regulations of the board.]

5. Practicing or
attempting to practice homeopathic medicine under a name other than the name
under which he is licensed.

6. Signing a blank
prescription form.

7. Influencing a
patient in order to engage in sexual activity with the patient or another
person.

8. Attempting
directly or indirectly, by way of intimidation, coercion or deception, to
obtain or retain a patient or to discourage a patient from obtaining a second
opinion.

9. Terminating the
medical care of a patient without giving adequate notice or making other arrangements
for the continued care of the patient.

Sec. 31. NRS 630A.360 is
hereby amended to read as follows:

630A.360 [1.] The
following acts, among others, constitute [unprofessional
conduct:

(a)]grounds for initiating disciplinary action or denying the
issuance of a license:

1. Directly
or indirectly [giving to or]
receiving from any person [, corporation or other
business organization] any fee, commission, rebate or other form
of compensation [for sending, referring or
otherwise inducing a person to communicate with a homeopathic physician in his
professional capacity or for any professional services not actually and
personally rendered, except as provided in subsection 2.

(b)]which tends or is intended to influence the physicians
objective evaluation or treatment of a patient.

2. Dividing a fee
between homeopathic physicians, unless the patient is informed of the division
of fees and the division is made in proportion to the services personally
performed and the responsibility assumed by each homeopathic physician.

3. Charging for
visits to the homeopathic physicians office which did not occur or for
services which were not rendered or documented in the records of the patient.

4. Employing,
directly or indirectly, any suspended or unlicensed person in the practice of
homeopathic medicine, or the aiding , [or] abetting or
assisting of any unlicensed person to practice homeopathic medicine [.

2. It is not
unprofessional conduct:

(a) For persons holding
valid licenses under this chapter to practice homeopathic medicine in partnership
under a partnership agreement or in a corporation or an association authorized
by law, or to pool, share, divide or apportion the fees and money received by
them or by the partnership, corporation or association in accordance with the
partnership agreement or the policies of the board of directors of the
corporation or association.

(b) For two or more
persons holding valid licenses under this chapter to receive adequate compensation
for concurrently rendering professional care to a patient and dividing a fee,
if the patient has full knowledge of this division and if the division is made
in proportion to the services performed and the responsibility assumed by each.]contrary to the provisions of this chapter or the
regulations adopted by the board.

5. Advertising the
services of an unlicensed person in the practice of homeopathic medicine.

6. Delegating
responsibility for the care of a patient to a person whom the homeopathic
physician knows, or has reason to know, is not qualified to undertake that
responsibility.

7. Failing to
disclose to a patient any financial or other conflict of interest affecting the
care of the patient.

Sec. 32. NRS 630A.370 is
hereby amended to read as follows:

630A.370 The following acts, among
others, constitute [unprofessional conduct:

1. Habitual
drunkenness or habitual addiction to the use of a controlled substance as
defined in chapter 453 of NRS.]grounds
for initiating disciplinary action or denying the issuance of a license:

1. Inability to
practice homeopathic medicine with reasonable skill and safety because of an
illness, a mental or physical condition or the use of alcohol, drugs, narcotics
or any other addictive substance.

2. Engaging in any:

(a) Professional conduct which is intended to
deceive or which the board by regulation has determined is unethical.

(b) Medical practice harmful to the public or
any conduct detrimental to the public health, safety or morals which does not
constitute gross or repeated malpractice or professional incompetence.

3. Administering, dispensing or
prescribing any controlled substance , as defined
in chapter 453 of NRS, [or any dangerous drug as
defined in chapter 454 of NRS, other than in the course of legitimate
professional practice or]except as
authorized by law.

4. Performing, assisting or advising an
unlawful abortion or in the injection of any liquid substance into the human
body for the purpose of causing an abortion.

5. Practicing or
offering to practice beyond the scope permitted by law, or performing services
which the homeopathic physician knows or has reason to know he is not competent
to perform.

6. Performing any
procedure without first obtaining the informed consent of the patient or his
family or prescribing any therapy which by the current standards of the
practice of homeopathic medicine is experimental.

7. Continued
failure to exercise the skill or diligence or use the methods ordinarily
exercised under the same circumstances by physicians in good standing who
practice homeopathy and electrodiagnosis.

Sec. 33. NRS 630A.380 is
hereby amended to read as follows:

630A.380 The following acts, among
others, constitute [unprofessional conduct.]

conduct.]grounds for initiating disciplinary action or denying the
issuance of a license:

1. Willful disclosure of a communication
privileged under a statute or court order.

2. Willful [disobedience
of the regulations of the state board of health or of the board of homeopathic
medical examiners.

3. Violating or
attempting to violate, directly or indirectly, or assisting in or abetting the
violation of or conspiring to violate any prohibition made in this chapter.]failure to comply with any provision of this chapter,
regulation, subpena or order of the board or with any court order relating to
this chapter.

3. Willful failure
to perform any statutory or other legal obligation imposed upon a licensed
homeopathic physician.

Sec. 34. NRS 630A.390 is
hereby amended to read as follows:

630A.390 [The
board or any of its members, any medical review panel of a hospital or medical
society which becomes aware that any one or combination of the grounds for
initiating disciplinary action may exist as to a person practicing homeopathic
medicine in this state shall, and any other person who is so aware may, file a
written complaint specifying the relevant facts with the board or with the
medical society of the county in which the person charged has his office if
there is a medical society in the county.]

1. Any person who
becomes aware that a person practicing medicine in this state has, is or is
about to become engaged in conduct which constitutes grounds for initiating
disciplinary action may file a written complaint with the board.

2. Any medical
society or medical facility or facility for the dependent licensed in this
state shall report to the board the initiation and outcome of any disciplinary
action against any homeopathic physician concerning the care of a patient or
the competency of the physician.

3. The clerk of
every court shall report to the board any finding, judgment or other
determination of the court that a homeopathic physician:

(a) Is mentally ill;

(b) Is mentally
incompetent;

(c) Has been convicted of
a felony or any law relating to controlled substances or dangerous drugs;

(d) Is guilty of abuse or
fraud under any state or federal program providing medical assistance; or

(e) Is liable for damages
for malpractice or negligence.

Sec. 35. NRS 630A.400 is
hereby amended to read as follows:

630A.400 1. [When a complaint is filed:

(a) With the board, it
shall be reviewed by the board.

(b) With a county medical
society, the society shall forward a copy of the complaint to the board for
review.]The board or a committee of its
members designated by the board shall review every complaint filed with the
board and conduct an investigation to determine whether there is a reasonable
basis for compelling a homeopathic physician to take a mental or physical examination or an examination of his competence to practice
homeopathic medicine.

examination or an examination of his
competence to practice homeopathic medicine.

2. If a committee
is designated, it must be composed of at least three members of the board, at
least one of whom is a licensed homeopathic physician.

3. If, from
the complaint or from other official records, it appears that the complaint is
not frivolous and the complaint charges [:

(a) Unprofessional
conduct, a conviction or the suspension or revocation of a license to practice
homeopathic medicine, the board shall proceed with appropriate disciplinary
action.

(b) Gross]gross or repeated malpractice , [or professional incompetence,] the board
shall transmit the original complaint, along with further facts or information
derived from its own review, to the attorney general.

4. Following the
investigation, the committee shall present its evaluation and recommendations
to the board. The board shall review the committees findings to determine
whether to take any further action, but a member of the board who participated
in the investigation may not participate in this review or in any subsequent
hearing or action taken by the board.

Sec. 36. NRS 630A.420 is
hereby amended to read as follows:

630A.420 1. If the board [determines that a complaint is not frivolous, the
board may require the person charged in the complaint to submit to a mental or
physical examination by physicians designated by the board.]or its investigative committee has reason to believe that the
conduct of any homeopathic physician has raised a reasonable question as to his
competence to practice medicine with reasonable skill and safety to patients,
it may order the homeopathic physician to undergo:

(a) A mental or physical
examination; or

(b) An examination of his
competence to practice homeopathic medicine,

by physicians or others designated by
the board to assist the board in determining the fitness of the homeopathic
physician to practice homeopathic medicine.

2. For the purposes of this section:

(a) Every homeopathic physician who applies for a license or is licensed under this
chapter [who accepts the privilege of practicing
homeopathic medicine in this state] shall be deemed to have given
his consent to submit to a mental or physical examination or an examination of his competence to practice homeopathic
medicine when directed to do so in writing by the board [.]or an
investigative committee of the board.

(b) The testimony or [examination]
reports of the examining physicians are not privileged communications.

3. Except in extraordinary circumstances,
as determined by the board, the failure of a homeopathic physician licensed
under this chapter to submit to an examination when directed as provided in
this section constitutes an admission of the charges against him.

Sec. 37. NRS 630A.430 is
hereby amended to read as follows:

630A.430 If the board has reason to
believe that the conduct of any homeopathic physician has raised a reasonable
question as to his competence to practice homeopathic
medicine with reasonable skill and safety to patients, the board may [cause a
medical competency] order an examination of the homeopathic physician [for the
purposes of determining] to determine his fitness to practice homeopathic
medicine.

to practice homeopathic medicine with reasonable skill and
safety to patients, the board may [cause a
medical competency]order an examination
of the homeopathic physician [for the purposes of
determining]to determine his
fitness to practice homeopathic medicine. When such action is taken, the
reasons for the action must be documented and must be available to the
homeopathic physician being examined.

Sec. 38. NRS 630A.440 is
hereby amended to read as follows:

630A.440 If the board issues an order
summarily suspending the license of a homeopathic physician pending proceedings
for disciplinary action and requires the homeopathic physician to submit to a mental
or physical examination or [a medical competency
examination,]an examination of his
competence to practice homeopathic medicine, the examination must be
conducted and the results obtained not later than 60 days after the board
issues its order.

Sec. 39. NRS 630A.450 is
hereby amended to read as follows:

630A.450 If the board issues an order
summarily suspending the license of a homeopathic physician pending proceedings
for disciplinary action, the court shall not stay that order . [unless the board fails
to institute and determine those proceedings as promptly as the requirements
for investigation of the case reasonably allow.]

Sec. 40. NRS 630A.460 is
hereby amended to read as follows:

630A.460 1. In addition to
any other remedy provided by law, the board, through its president or [secretary]secretary-treasurer
or the attorney general, may apply to any court of competent
jurisdiction to [enjoin any unprofessional]:

(a) Enjoin any prohibited
act or other conduct of a homeopathic physician which is harmful to the
public [or to limit the];

(b) Enjoin any person who
is not licensed under this chapter from practicing homeopathic medicine; or

(c) Limit a homeopathic
physicians practice or suspend his license to practice homeopathic medicine . [as provided in this
section.]

2. The court in a proper case may issue a
temporary restraining order or a preliminary injunction for [such purposes:]the
purposes of subsection 1:

(a) Without proof of actual damages sustained by
any person ; [,
this provision being a preventive as well as punitive measure.]

(b) Without relieving any
person from criminal prosecution for engaging in the practice of homeopathic
medicine without a license; and

(c) Pending
proceedings for disciplinary action by the board. [Those
proceedings must be instituted and determined as promptly as the requirements
for investigation of the case reasonably allow.]

Sec. 41. (Deleted by
amendment.)

Sec. 42. NRS 630A.480 is
hereby amended to read as follows:

630A.480 1. If
[:

1. A complaint
charging unprofessional conduct, a conviction or the suspension or revocation
of a license to practice homeopathic medicine is not frivolous; or

2. With respect to
a complaint reported by the attorney general, the board has determined to
proceed with disciplinary action,

the secretary of the board shall], after an investigation by a committee or on its own
initiative, the board decides to proceed with disciplinary action, it shall
bring charges against a licensed homeopathic physician and fix a time
and place for a formal hearing . [and cause a notice of
the hearing and a formal complaint prepared by the board to be served on the
person charged at least 20 days before the date fixed for the hearing.]The board shall notify the homeopathic physician of the
charges brought against him, including the time and place set for the hearing,
and of the sanctions authorized in NRS 630A.510.

2. The board, a
hearing officer or a committee of the members of the board shall hold the
formal hearing on the charges at the time and place designated in the
notification. If the hearing is before a committee, at least one member of the
board who is not a physician must participate in the hearing and in the final
recommendation of the committee to the board.

Sec. 43. NRS 630A.490 is
hereby amended to read as follows:

630A.490 1. Service of
process made under this chapter must be either personal or by registered or
certified mail with return receipt requested, addressed to the homeopathic
physician at his last known address . [, as indicated on the records of the board, if
possible.] If personal service cannot be made and if notice by
mail is returned undelivered, the [secretary]secretary-treasurer of the board shall cause
notice [of hearing] to be published
once a week for 4 consecutive weeks in a newspaper published in the county of
the homeopathic physicians last known address or, if no newspaper is published
in that county, then in a newspaper widely distributed in that county.

2. Proof of service of process or
publication of notice made under this chapter must be filed with the [secretary of the] board and [must be] recorded in the minutes of the
board.

Sec. 44. NRS 630A.500 is
hereby amended to read as follows:

630A.500 In any disciplinary [proceeding before the board:]hearing:

1. The board, a
panel of the members of the board or a hearing officer is not bound by formal
rules of evidence.

2. Proof of
actual injury need not be established . [where the complaint charges deceptive or unethical
professional conduct or medical practice harmful to the public.

2.]3. A certified copy of the record of a
court or a licensing agency showing a conviction or plea
of nolo contendere or the suspension , [or] revocation ,
limitation, modification, denial or surrender of a license to practice
homeopathic medicine is conclusive evidence of its occurrence.

Sec. 45. NRS 630A.510 is
hereby amended to read as follows:

630A.510 1. [The person charged is entitled to a hearing before the
board, but the failure of the person charged to attend his hearing or his
failure to defend himself does not serve to delay or void the proceedings. The
board may, for good cause shown, continue any hearing from time to time.]

time.]Any member of the board who was not a member of the
investigative committee, if one was appointed, may participate in the final
order of the board. If the board, after a formal hearing, determines that a
violation of the provisions of this chapter or the regulations adopted by the
board has occurred, it shall issue and serve on the person charged an order, in
writing, containing its findings and any sanctions imposed by the board. If the
board determines that no violation has occurred, it shall dismiss the charges,
in writing, and notify the person that the charges have been dismissed.

2. If the board finds [the person guilty as charged in the complaint,]that a violation has occurred, it may by order:

(a) Place the person on probation for a
specified period [or until further order of the
board.]on any of the conditions specified
in the order.

(b) Administer to the person a public [or private] reprimand.

(c) Limit the practice of the person [as the board deems fit.]or execute a method of treatment from the scope of his
practice.

(d) Suspend the license of the person [to practice homeopathic medicine] for a
specified period or until further order of the board.

(e) Revoke the license of the person to practice
homeopathic medicine.

[The order of the board may
contain such other terms, provisions or conditions as the board deems proper which
are not inconsistent with law.]

(f) Require the person to
participate in a program to correct a dependence upon alcohol or a controlled
substance, as defined in chapter 453 of NRS, or any other impairment.

(g) Require supervision
of the persons practice.

(h) Impose a fine not to
exceed $5,000.

(i) Require the person to
perform public service without compensation.

(j) Require the person to
take a physical or mental examination or an examination of his competence to
practice homeopathic medicine.

630A.520 1. Any person [who has been placed on probation or whose license has
been limited, suspended or revoked by]aggrieved
by a final order of the board is entitled to judicial review of the
boards order.

2. Every order of the board which limits
the practice of homeopathic medicine or suspends or revokes a license is
effective from the date the [secretary]secretary-treasurer of the board certifies the
order until the date the order is modified or reversed by a final judgment of
the court. The court shall not stay the order of the board [unless the board has failed to comply with the
procedural requirements provided for in NRS 233B.140.]pending a final determination by the court.

3. The district court shall give a
petition for judicial review of the boards order priority over other civil
matters which are not expressly given priority by law.

by an order of the board may apply to the board [after a reasonable period] for removal
of the limitation or restoration of his license.

2. In hearing the application, the board [:]or a committee
of members of the board:

(a) May require the [person]applicant to submit to a mental or physical
examination or an examination of his competence to
practice homeopathic medicine by physicians or
other persons whom it designates and submit such other evidence of
changed conditions and of fitness as it deems proper.

(b) Shall determine whether under all the
circumstances the time of the application is reasonable.

(c) May deny the application or modify or
rescind its order as it deems the evidence and the public safety warrants.

3. The applicant
has the burden of proving by clear and convincing evidence that the
requirements for restoration of the license or removal of the limitation have
been met.

4. The board shall
not restore a license unless it is satisfied that the applicant has complied
with all of the terms and conditions set forth in the final order of the board
and that he is capable of practicing homeopathic medicine with reasonable skill
and safety to patients.

5. To restore a
license that has been revoked by the board, a person must apply for a license
and take an examination as though he had never been licensed under this
chapter.

Sec. 48. NRS 630A.540 is
hereby amended to read as follows:

630A.540 [The
board of homeopathic medical examiners, a medical review panel of a hospital, a
medical society, or any person who or other organization which initiates or
assists in any lawful investigation or proceeding concerning the discipline of
a homeopathic physician for gross malpractice, repeated malpractice,
professional incompetence or unprofessional conduct]

1. Any person who
furnishes information to the board, in good faith and without malicious intent
in accordance with the provisions of this chapter, concerning a person who is
licensed or applies for a license under this chapter is immune from [any civil action for that initiation or assistance or
any consequential damages, if the person or organization acted without
malicious intent.]civil liability for
furnishing that information.

2. The board and
its members, staff, counsel, investigators, experts, committees, panels,
hearing officers and consultants are immune from civil liability for any
decision or action taken in good faith and without malicious intent in response
to information received by the board.

3. The board and
any of its members are immune from civil liability for disseminating
information concerning a person who is licensed or applies for a license under
this chapter to the attorney general or any board or agency of the state, hospital, medical society, insurer, employer,
patient or his family or law enforcement agency.

of the state, hospital, medical society, insurer, employer,
patient or his family or law enforcement agency.

Sec. 49. NRS 630A.580 is
hereby amended to read as follows:

630A.580 In [charging]seeking injunctive relief against any person [with a]for an
alleged violation of this chapter by practicing homeopathic medicine
without a license, it is sufficient to [charge]allege that he did, upon a certain day, and in a
certain county of this state, engage in the practice of homeopathic medicine [, he not]without
having a license to do so, without [averring]alleging any further or more particular facts
concerning the matter.

Sec. 50. NRS 630A.590 is
hereby amended to read as follows:

630A.590 Any person who:

1. Presents to the
board as his own the diploma, license or credentials of another;

2. Gives either false or forged evidence
of any kind to the board ; [or any member thereof, in connection with an
application for a license to practice homeopathic medicine; or]

3. Practices homeopathic medicine under a
false or assumed name [or falsely personates
another licensee of a like or different name,]; or

4. Practices
homeopathic medicine without being licensed under this chapter,

shall be punished by imprisonment in the state prison for
not less than 1 year nor more than 6 years, and may be further punished by a
fine of not more than $5,000.

Sec. 51. NRS 630A.470 is
hereby repealed.

________

CHAPTER 776, AB 763

Assembly Bill No.
763Committee on Commerce

CHAPTER 776

AN ACT relating to repossession; removing
the requirement that the notice of intent to sell a vehicle or construction
equipment include a specific statement concerning the potential liability of
the debtor; and providing other matters properly relating thereto.

[Approved June 26, 1987]

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN
SENATE

AND ASSEMBLY, DO ENACT AS FOLLOWS:

Section 1. NRS 482.516 is
hereby amended to read as follows:

482.516 1. Any provision in
any security agreement for the sale of a vehicle to the contrary
notwithstanding, at least 10 days written notice of intent to sell a repossessed
vehicle must be given to all persons liable on the security agreement. The
notice [shall]must be given in person or [shall
be]sent by mail directed to the address of
the persons shown on the security agreement, unless such persons have notified
the holder in writing of a different address.

sent by mail directed to the address of the persons shown on
the security agreement, unless such persons have notified the holder in writing
of a different address.

2. The notice:

(a) [Shall]Must set forth that there is a right to redeem
the vehicle and the total amount required as of the date of the notice to
redeem;

(b) May inform such persons of their privilege
of reinstatement of the security agreement, if the holder extends such a privilege;

(c) [Shall]Must give notice of the holders intent to resell
the vehicle at the expiration of 10 days from the date of giving or mailing the
notice;

(d) [Shall]Must disclose the place at which the vehicle will
be returned to the buyer upon redemption or reinstatement; and

(e) [Shall]Must designate the name and address of the person
to whom payment [shall]must be made.

3. During the period provided under the
notice, the person or persons liable on the security agreement may pay in full
the indebtedness evidenced by the security agreement. Such persons [shall be]are liable
for any deficiency after sale of the repossessed vehicle only if the notice
prescribed by this section is given within 60 days [of]after repossession and includes [the following:

(a) A notice, in at least
eight-point bold type if the notice is printed, reading as follows: Notice:
You are subject to suit and liability if the amount obtained upon sale of the
vehicle is insufficient to pay the balance and any other amounts due.

(b) An]an itemization of the balance and of any costs or fees for delinquency, collection or
repossession . [costs
and fees.] In addition, the notice [shall]must either set forth the computation or estimate
of the amount of any credit for unearned finance charges or canceled insurance
as of the date of the notice or [shall]
state that such a credit may be available against the amount due.

________

CHAPTER 777, AB 291

Assembly Bill No.
291Committee on Taxation

CHAPTER 777

AN ACT relating to property tax; revising
the definition of full cash value; requiring the appraisal of single parcels
to determine the taxable value of certain property; providing a penalty; and
providing other matters properly relating thereto.

(a) Confer with,
advise and direct county assessors, sheriffs as ex officio collectors of
licenses and all other county officers having to do with the preparation of the
assessment roll or collection of taxes or other revenues as to their duties.

[2. To
establish]

(b) Establish and
prescribe general and uniform [rules and]
regulations governing the assessment of property by the county assessors of the
various counties, not in conflict with law.

[3. To
prescribe]

(c) Prescribe the
form and manner in which assessment rolls or tax lists[shall]must be
kept by county assessors.

[4. To
prescribe]

(d) Prescribe the
form of the statements of property owners in making returns of their property.

[5. To
require]

(e) Require county
assessors, sheriffs as ex officio collectors of licenses and all other county
officers having to do with the preparation of the assessment roll or collection
of taxes or other revenues, to furnish such information in relation to
assessments, licenses or the equalization of property valuations, and in such
form as the Nevada tax commission may demand.

2. Each assessor
and any other such officer shall certify under penalty of perjury that in
assessing property or furnishing other information required pursuant to this
section he has complied with the regulations of the Nevada tax commission. This
certificate must be appended to each assessment roll and any other information
furnished.

3. A county
assessor or other county officer whose certificate is knowingly falsified is
guilty of a misdemeanor. If the Nevada tax commission finds that a county
assessor or other county officer has knowingly violated its regulations and
thereby has caused less revenue to be collected from taxes, it shall deduct the
amount of the undercollection from the money otherwise payable to the county
from the proceeds of the supplemental city-county relief tax.

Sec. 2. NRS 361.025 is
hereby amended to read as follows:

361.025 Full cash value means the [amount at which the property would be appraised if
taken in payment of a just debt due from a solvent debtor.]most probable price which property would bring in a
competitive and open market under all conditions requisite to a fair sale.

(b) Any improvements made on the land by
subtracting from the cost of replacement of the improvements all applicable
depreciation and obsolescence.

2. The unit of
appraisal must be a single parcel unless:

(a) The location of the
improvements causes two or more parcels to function as a single parcel; or

(b) The parcel is one of
a group of contiguous parcels which qualifies for valuation as a subdivision
pursuant to the regulations of the Nevada tax commission.

3. The taxable value of a possessory
interest for the purpose of NRS 361.157 or 361.159 may be determined:

(a) By subtracting from the cost of replacement
of the improvements all applicable depreciation and obsolescence; or

(b) By capitalizing the fair economic income
expectancy.

[3.]4. The taxable value of other taxable
personal property, except mobile homes, must be determined by subtracting from
the cost of replacement of the property all applicable depreciation and
obsolescence.

[4.]5. The computed taxable value of any
property must not exceed its full cash value. Each person determining the
taxable value of property shall reduce it if necessary to comply with this requirement.
A person determining whether taxable value exceeds full cash value or whether
obsolescence is a factor in valuation may consider:

(b) A summation of the estimated full cash value
of the land and contributory value of the improvements.

(c) Capitalization of the fair economic income
expectancy or fair economic rent.

A county assessor is required to make a reduction prescribed
in this subsection only if the owner calls to his attention the facts
warranting it , but may make it if he is
otherwise aware of those facts.

[5.]6. The Nevada tax commission shall by
regulation establish:

(a) Standards for determining the cost of
replacement of improvements of various kinds.

(b) Schedules of depreciation for personal
property based on its estimated life. Depreciation of an improvement made on
real property must be calculated at 1.5 percent of the cost of replacement for
each year of adjusted actual age of the improvement, up to a maximum of 50
years.

(c) Criteria for the
valuation of two or more parcels as a subdivision.

[6.]7. The county assessor shall, upon the
request of the owner, furnish within 15 days to the owner a copy of the most
recent appraisal of the property.

8. The provisions
of this section do not apply to property which is assessed pursuant to NRS
361.320.

Sec. 4. Section 3 of this
act becomes effective on January 1, 1988, and first applies to assessments made
for inclusion on the 1989 tax roll.

________

CHAPTER 778, SB 353

Senate Bill No.
353Committee on Transportation

CHAPTER 778

AN ACT relating to motor vehicles;
requiring that certain persons engaged in the business of transporting motor
vehicles obtain a license from the department of motor vehicles and public
safety; authorizing the issuance of special license plates to those persons;
providing a penalty; and providing other matters properly relating thereto.

[Approved June 26, 1987]

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN
SENATE

AND ASSEMBLY, DO ENACT AS FOLLOWS:

Section 1. Chapter 482 of NRS is
hereby amended by adding thereto the provisions set forth as sections 2 to 11,
inclusive, of this act.

Sec. 2. The
purpose of licensing vehicle transporters is to protect the public health and
safety and the general welfare of the people of this state. Any license issued
pursuant to sections 3 to 10, inclusive, of this act is a revocable privilege
and a holder of such a license does not acquire thereby any vested right.

Sec. 3. Vehicle
transporter means a person who engages in the business of transporting motor vehicles
in which he has no ownership interest and which are otherwise required to be
registered pursuant to this chapter by operating them, singly or in
combination, upon the highway under their own motive power.

Sec. 4. 1. A
person shall not operate as a vehicle transporter in this state without a
license issued by the department.

2. The provisions
of sections 3 to 10, inclusive, of this act, do not apply to a:

(b) Person required to be
licensed as a motor convoy carrier pursuant to NRS 706.526.

Sec. 5. 1. An
application for a license as a vehicle transporter must be accompanied by a fee
of $100 and be submitted on forms supplied by the department. The application
must contain:

(a) The applicants name
and address; and

(b) Such other
information as the department requires.

2. Upon receipt of
the application and when satisfied that the applicant is entitled thereto, the
department shall issue to the applicant a license as a vehicle transporter.

3. A license
issued pursuant to this section expires on December 31 of each year. Before December
31 of each year, a licensee must submit to the department,
on forms supplied by the department and in the manner specified by the department,
an application for renewal accompanied by an annual fee for renewal of $50.

department, on forms supplied by the
department and in the manner specified by the department, an application for
renewal accompanied by an annual fee for renewal of $50.

Sec. 6. A
vehicle transporter licensed pursuant to section 5 of this act may operate on
the highways of this state any motor vehicle otherwise required to be
registered pursuant to this chapter if there is displayed on the vehicle a
special plate assigned to the vehicle transporter pursuant to section 7 of this
act.

Sec. 7. 1. Upon
issuance of a license as a vehicle transporter pursuant to section 5 of this
act, the department shall assign to the vehicle transporter one or more
registration certificates and special license plates for use on motor vehicles
being delivered in this state. Each plate must have displayed upon it suitable
characters, as determined by the department, to identify the vehicle as being
operated by a vehicle transporter. The vehicle transporters plates may be used
interchangeably on transported vehicles.

2. The department
may issue to each vehicle transporter a reasonable number of registration
certificates and license plates.

Sec. 8. 1. A
vehicle transporter shall not operate any motor vehicle being transported by
him on the highways of this state, or permit to be so operated, unless a
license plate assigned to him is attached thereto in the manner specified in
this chapter.

2. A vehicle
transporter shall not:

(a) Loan the license
plates assigned to him to any other person;

(b) Permit those license
plates to be used by any other person or for a purpose other than permitted by
sections 3 to 10, inclusive, of this act; or

(c) Use those license
plates on any vehicle in which he has any ownership interest.

Sec. 9. 1. Before
any license as a vehicle transporter is issued or special license plate is
assigned, the applicant shall procure and file with the department a good and
sufficient bond in the amount of $100,000 with a corporate surety thereon,
licensed to do business within the State of Nevada, approved as to form by the
attorney general, and conditioned that the applicant shall conduct his business
as a vehicle transporter without fraud or fraudulent representation, and
without violation of the provisions of this chapter.

2. The bond must
be continuous in form and the total aggregate liability on the bond must be
limited to the payment of the total amount of the bond, but in no case may the
amount of any judgment in an action on such a bond exceed the retail value of
any vehicle in connection with which the action was brought.

3. The undertaking
on the bond includes any fraud or fraudulent representation or violation of any
of the provisions of this chapter by any employee of the licensee on his behalf
and within the scope of his employment.

4. The bond must
provide that any person injured by the action of the licensee or his employee
in violation of any provisions of this chapter may bring an action on the bond.

5. In lieu of the
bond required by this section, an applicant may make a deposit with the
department that satisfies the requirements of NRS 482.346.

Sec. 10. 1. The
department may refuse to issue or suspend or revoke a license as a vehicle
transporter upon any of the following grounds:

(a) Conviction of a
felony in the State of Nevada or any other state, territory or nation.

(b) Material misstatement
in the application for a license.

(c) Evidence of unfitness
of the applicant or licensee.

(d) Willful failure to
comply with the provisions of this chapter or the regulations adopted pursuant
thereto, or any law relating to the operation of a motor vehicle.

(e) Failure or refusal to
furnish and keep in force any bond.

(f) Failure of the
licensee to maintain any other license required by any political subdivision of
this state.

(g) Knowingly having
possession of a stolen motor vehicle or a motor vehicle with a defaced, altered
or obliterated manufacturers identification number or other distinguishing
number or identification mark.

(h) Loaning or permitting
the improper use of any special license plate assigned to him.

2. Any person
whose application is denied or license is suspended or revoked pursuant to this
section is entitled to a hearing as provided in NRS 482.353.

Sec. 11. Each
person who applies for a special license plate as a vehicle transporter shall
pay at the time of application, in addition to any other fees specified in this
chapter, a fee of $25 for each plate.

Sec. 12. NRS 482.010 is
hereby amended to read as follows:

482.010 As used in this chapter unless
the context otherwise requires, the words and terms defined in NRS 482.011 to
482.135, inclusive, and section 3 of this act, have
the meanings ascribed to them in those sections.

Sec. 13. NRS 482.275 is
hereby amended to read as follows:

482.275 1. The license
plates for a motor vehicle other than a motorcycle , [or] power cycle or
motor vehicle being transported by a licensed vehicle transporter must
be attached thereto, one in the front and the other in the rear. The license
plate issued for all other vehicles required to be registered must be attached
to the rear of the vehicle. The license plates must be so displayed during the
current calendar year or registration period.

2. Every license plate must at all times
be securely fastened to the vehicle to which it is assigned so as to prevent
the plate from swinging and at a height not less than 12 inches from the
ground, measuring from the bottom of such plate, in a place and position to be
clearly visible, and must be maintained free from foreign materials and in a
condition to be clearly legible.

3. Any license plate which is issued to a
vehicle transporter or a dealer, rebuilder or
manufacturer may be attached to a vehicle owned or controlled by that person by
a secure means. No license plate may be displayed loosely in a window or by any
other unsecured method in any motor vehicle.

482.545 It is unlawful for any person to
commit any of the following acts:

1. To operate, or for the owner thereof
knowingly to permit the operation of, upon a highway any motor vehicle, trailer
or semitrailer which is not registered or which does not have attached thereto
and displayed thereon the number of plate or plates assigned thereto by the
department for the current period of registration or calendar year, subject to
the exemption allowed in NRS 482.320 to 482.363, inclusive, 482.385 to 482.396,
inclusive, [and 482.420.]482.420 and sections 3 to 10, inclusive, of this act.

2. To move upon a highway any slide-in
camper that does not have affixed on it the tax plate or sticker provided in
NRS 361.5643, when the movement is by a vehicle not subject to the exemption
allowed in NRS 482.320 to 482.363, inclusive, 482.385 to 482.396, inclusive, [and 482.420.]482.420
and sections 3 to 10, inclusive, of this act.

3. To display, cause or permit to be
displayed or to have in possession any certificate of registration, license
plate, certificate of ownership or other document of title knowing it to be
fictitious or to have been canceled, revoked, suspended or altered.

4. To lend to or knowingly permit the use
of by one not entitled thereto any registration card or plate issued to the
person so lending or permitting the use thereof.

5. To fail or to refuse to surrender to
the department, upon demand, any registration card or plate which has been
suspended, canceled or revoked as provided in this chapter.

6. To use a false or fictitious name or
address in any application for the registration of any vehicle or for any
renewal or duplicate thereof, or knowingly to make a false statement or
knowingly to conceal a material fact or otherwise commit a fraud in [any such]an application.
A violation of this subsection is a gross misdemeanor.

7. Knowingly to operate a vehicle which
has an altered vehicle identification number, serial number, motor number,
other distinguishing number or identification mark required for registration.

Sec. 15. NRS 706.741 is
hereby amended to read as follows:

706.741 1. Notwithstanding
the provisions of NRS 482.320 and the provisions of NRS 706.091, 706.521 and
706.526, it is lawful for any [manufacturer,]:

(a) Vehicle transporter
licensed pursuant to section 5 of this act; or

(b) Manufacturer, distributor
or dealer in or rebuilder of motor vehicles having an established place of
business in this state ,

to operate, drive or tow any motor vehicles over and along
the highways of this state when the motor vehicles are to be sold, exchanged or
stored for the purpose of sale or exchange, without first securing from the
department the license and paying the motor convoy fee therefor.

2. A vehicle
transporter or a manufacturer, distributor, dealer or rebuilder shall
not operate, drive or tow any such motor vehicle unless there are attached thereto the license plates required by law of all
vehicle transporters, manufacturers, dealers or rebuilders, or a permit from
the department pursuant to NRS 482.3212.

are attached thereto the license plates required by law of
all vehicle transporters, manufacturers, dealers
or rebuilders, or a permit from the department pursuant to NRS 482.3212.

Sec. 16. Section 15 of this
act becomes effective at 12:01 a.m. on July 1, 1987.

________

CHAPTER 779, SB 410

Senate Bill No.
410Committee on Commerce and Labor

CHAPTER 779

AN ACT relating to psychologists; revising
the educational requirements for a license as a psychologist; requiring the
board of psychological examiners to administer a certain written examination;
changing the passing grade for the examination; and providing other matters
properly relating thereto.

[Approved June 26, 1987]

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN
SENATE

AND ASSEMBLY, DO ENACT AS FOLLOWS:

Section 1. NRS 641.170 is
hereby amended to read as follows:

641.170 Each applicant shall furnish
evidence satisfactory to the board that he:

1. Is at least 21 years of age.

2. Is of good moral character.

3. Is a citizen of the United States, or
is lawfully entitled to remain and work in the United States.

4. Has [received]earned a doctorate in psychology from an accredited educational institution approved by the
board, or has [training]other doctorate-level training from an accredited educational
institution deemed equivalent by the board in both subject matter and
extent of training.

5. Has at least 1 year of postdoctoral
experience satisfactory to the board.

Sec. 2. NRS 641.180 is
hereby amended to read as follows:

641.180 1. The
board shall [give]administer to each applicant for a certificate a
written examination on his knowledge of psychology. The
examination administered must be the Examination for the Professional Practice
of Psychology in the form most recently provided by the Professional
Examination Service before January 1, 1987. In addition, the board may
require an oral examination [.]in whatever applied or theoretical fields it deems
appropriate.

2. The examination must be given at least
once a year, and may be given more often if deemed necessary by the board. The
examination must be given at a time a place, and under such supervision, as the
board may determine. A grade of [75]70 percent is a passing grade. [The board may examine in whatever applied or
theoretical fields it deems appropriate.]

3. The board shall notify each applicant
of the results of his written examination and supply him with a copy of all
material information about those results provided to the board by the
Professional Examination Service.

________

CHAPTER 780, AB 892

Assembly Bill No.
892Committee on Ways and Means

CHAPTER 780

AN ACT relating to public schools;
apportioning the state distributive school account in the state general fund
for the biennium 1987-89; making an appropriation; authorizing certain
expenditures; and providing other matters properly relating thereto.

[Approved June 26, 1987]

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN
SENATE

AND ASSEMBLY, DO ENACT AS FOLLOWS:

Section 1. The basic support
guarantee per pupil for the respective school districts of the state for the
fiscal year 1987-88 is:

Sec. 2. 1. The
basic support guarantee for school districts for operating purposes for the
fiscal year 1988-89 is an aggregate weighted average of $2,489 per pupil.

2. The department of taxation on or
before April 1, 1988, shall provide a certified estimate of the assessed
valuation for each school district for the fiscal year 1988-89. The assessed
valuation for each school district must be that which is taxable for purposes
of providing revenue to school districts, including net proceeds of mines.

4. The ad valorem adjustment may be made
only to take account of the difference in the value of taxable property in the
school district between the amount estimated as of May 25, 1987, and the amount
estimated as of April 1, 1988, for the fiscal year 1988-89.

5. Upon receipt of the certified
estimates of assessed valuations as of April 1, 1988, from the department of
taxation, the department of education must recalculate the amount of ad valorem
adjustment and the basic support guarantee for operating purposes for fiscal
year 1988-89 by April 25, 1988. The basic support guarantee for each school
district for the fiscal year 1988-89 is the amount which is recalculated for
the fiscal year 1988-89 pursuant to this section.

Sec. 3. 1. The
basic support guarantee for each special education program unit which is
maintained and operated for at least 9 months of a school year is $24,000 for
each of the fiscal years 1987-88 and 1988-89, except as limited by subsection
2.

2. The maximum number of units and amount
of basic support for special education program units within each of the school
districts, before any reallocation pursuant to NRS 387.1221, for the fiscal
years 1987-88 and 1988-89 are:

3. The state board of education shall
reserve 25 special education program units for each of the fiscal years 1987-88
and 1988-89, to be allocated to school districts by the state board of
education to meet additional needs that cannot be met by the allocations
provided in subsection 2 for that fiscal year. These needs must be evaluated by
the department of education.

Sec. 4. 1. There
is hereby appropriated from the state general fund to the state distributive
school account in the state general fund created pursuant to NRS 387.030:

For the fiscal year 1987-88.......................................................... $207,322,231

For the fiscal year 1988-89.......................................................... $214,227,022

2. The money appropriated by subsection 1
must be:

(a) Expended in accordance with NRS 353.150 to
353.245, inclusive, concerning the allotment, transfer, work program and
budget; and

(b) Work-programmed for the 2 separate fiscal
years, 1987-88 and 1988-89, as required by NRS 353.215. Work programs may be
revised with the approval of the governor upon the recommendation of the chief
of the budget division of the department of administration.

3. Transfers to and from allotments must
be allowed and made in accordance with NRS 353.215 to 353.225, inclusive, after
separate consideration of the merits of each request.

4. The sums appropriated by subsection 1
are available for either fiscal year. Money may be transferred from one fiscal
year to the other with the approval of the governor upon the recommendation of
the chief of the budget division of the department of administration.

5. Any remaining balance of the
appropriation made by subsection 1 for the fiscal year 1987-88 must be
transferred and added to the money appropriated for the fiscal year 1988-89 and
may be expended as that money is expended.

6. Any remaining balance of the
appropriation made by subsection 1 for the fiscal year 1988-89, including any
money added thereto pursuant to the provisions of subsection 5, must not be
committed for expenditure after June 30, 1989, and reverts to the state general
fund as soon as all payments of money committed have been made.

Sec. 5. 1. Expenditure
of $35,278,000 by the department of education from money in the state
distributive school account which was not appropriated from the state general
fund is hereby authorized during the fiscal year beginning July 1, 1987.

2. Expenditure of $36,823,000 by the
department of education from money in the state distributive school account
which was not appropriated from the state general fund is hereby authorized
during the fiscal year beginning July 1, 1988.

3. For purposes of accounting and
reporting, the sums authorized for expenditure in subsections 1 and 2 are
considered to be expended before any appropriation is made to the state
distributive school account from the state general fund.

4. The money authorized to be expended by
subsections 1 and 2 must be expended in accordance with NRS 353.150 to 353.245,
inclusive, concerning the allotment, transfer, work program and budget.
Transfers to and from allotments must be allowed and made in accordance with
NRS 353.215 to 353.225, inclusive, after separate consideration of the merits
of each request.

5. The chief of the budget division of
the department of administration may, with the approval of the governor,
authorize the augmentation of the amounts authorized for expenditure by the
department of education, in subsections 1 and 2, for the purpose of meeting
obligations of the state incurred under chapter 387 of NRS with amounts from
any other state agency, from any agency of local government, from any agency of
the Federal Government or from any other source which he determines is in
excess of the amount taken into consideration by this act. The chief of the
budget division of the department of administration shall reduce any
authorization whenever he determines that money to be received will be less
than the amount authorized in subsections 1 and 2.

Sec. 6. Of the sums
appropriated from the state general fund in section 4 of this act, up to
$600,000 in each of the fiscal years 1987-88 and 1988-89 may be used to meet
the states matching requirement under the Child Nutrition Act.

Sec. 7. During each of the
fiscal years 1987-88 and 1988-89, whenever the state controller finds that
current claims against the state distributive school account in the state
general fund exceed the amount available in the account to pay those claims, he
may advance temporarily from the state general fund to the state distributive
school account the amount required to pay the claims, but no more than the
amount expected to be received in the current fiscal year from any source
authorized for the state distributive school account. No amount may be
transferred unless requested by the chief of the budget division of the
department of administration.

Sec. 8. This act becomes
effective at 12:01 a.m. on July 1, 1987.

________

CHAPTER 781, SB 588

Senate Bill No.
588Committee on Natural Resources

CHAPTER 781

AN ACT relating to trespassing;
authorizing the use of a painted post, structure or natural object as a notice
against trespassing or warning of danger; and providing other matters properly
relating thereto.

[Approved June 26, 1987]

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN
SENATE

AND ASSEMBLY, DO ENACT AS FOLLOWS:

Section 1. NRS 207.200 is
hereby amended to read as follows:

207.200 1. [Every]Any person
who [goes]:

(a) Goes upon the
land or into any building of another with intent to vex or annoy the owner or
occupant thereof, or to commit any unlawful act [,
or willfully]; or

(b) Willfully goes
or remains upon any land or in any building after having been warned by the
owner or occupant thereof not to trespass,

is guilty of a misdemeanor. The meaning of this subsection
is not limited by subsections 2 and 4.

2. [Every
owner or other occupant of any land is deemed to have given a]A sufficient warning against trespassing, within the
meaning of this section, [who:

(a) Posts in a
conspicuous manner on each side thereof, upon or near the boundary, at
intervals of not more than 700 feet, signs, legibly printed or painted in the
English language, warning persons not to trespass; or

(b) Fences]is given by either of the following methods:

(a) Painting, at
intervals of not more than 200 feet on each side of the land, upon or near the
boundary, a post, structure or natural object with not less than 50 square
inches of fluorescent orange paint or, if the post is a metal fence post,
painting the entire post with such paint.

3. Is a prima facie evidence of trespass
for any person to be found on private or public property which is posted or
fenced as provided in subsection 2 without lawful business with the owner or
occupant of the property.

4. An entryman on land under the laws of
the United States is an owner within the meaning of this section.

5. As used in this section, fence means
a barrier sufficient to indicate an intent to restrict the area to human
ingress, including, but not limited to, a wall, hedge or chain link or wire
mesh fence.

Sec. 2. Chapter 41 of NRS is
hereby amended by adding thereto a new section to read as follows:

In any case where there is a
duty to warn a trespasser against a dangerous condition of the premises, that
duty is discharged by painting, at intervals of not more than 200 feet on each
side of the premises, upon or near the boundary, a post, structure or natural
object with not less than 50 square inches of fluorescent orange paint or, if
the post is a metal fence post, painting the entire post with such paint.

AN ACT relating to manufactured homes;
prohibiting dealers from requiring that financing be obtained from a specific
source as a condition to the sale of a mobile or manufactured home; requiring
the licensing of repossessors and liquidators; and providing other matters
properly relating thereto.

[Approved June 26, 1987]

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN
SENATE

AND ASSEMBLY, DO ENACT AS FOLLOWS:

Section 1. Chapter 489 of NRS is
hereby amended by adding thereto the provisions set forth as sections 2 and 3
of this act.

Sec. 2. The division shall adopt regulations for the issuance and
renewal of a limited dealers license authorizing a person other than a bank,
savings and loan association, credit union, thrift company or other financial
institution to act as a repossessor or liquidator concerning manufactured
homes, mobile homes or commercial coaches.

Sec. 3. 1. A dealer shall not require a person to obtain
a loan or financing from him or any other person as a condition to the
purchase, sale or exchange of a manufactured home, mobile home or commercial
coach.

2. A dealer shall
disclose the substance of subsection 1 to each person with whom it agrees to purchase, sell or exchange a
manufactured home, mobile home or commercial coach.

with whom it agrees to purchase, sell
or exchange a manufactured home, mobile home or commercial coach. The division
may adopt regulations concerning the form and manner of the disclosure.

Sec. 4. NRS 489.076 is
hereby amended to read as follows:

489.076 1. Dealer means
any person who:

(a) For compensation, money or other things of
value, sells, exchanges, buys or offers for sale, negotiates or attempts to
negotiate a sale or exchange of an interest in a manufactured home, mobile home
or commercial coach subject to the requirements [under]of this chapter , or
induces or attempts to induce any person to buy or exchange an interest in a
manufactured home, mobile home or commercial coach;

(b) Receives or expects to receive a commission,
money, brokerage fees, profit or any other thing of value from either the
seller or purchaser of any manufactured home, mobile home or commercial coach; [or]

(c) Is engaged wholly or in part in the business
of selling manufactured homes, mobile homes or commercial coaches, or buying or
taking them in trade for the purpose of resale, selling, or offering for sale
or consignment to be sold , or otherwise dealing
in manufacture homes, mobile homes or commercial coaches [,]; or

(a) Receivers, trustees, administrators,
executors, guardians or other persons appointed by or acting under the order of
any court;

(b) Public officers while performing their
official duties;

(c) Banks , savings and
loan associations, credit unions, thrift companies or other financial
institutions proceeding as repossessors or liquidators [;]of their own security; or

(d) An owner selling his private residence.

Sec. 5. NRS 489.4971 is
hereby amended to read as follows:

489.4971 1. The fund for
education and recovery relating to manufactured housing is hereby created as a
special revenue fund [for the purpose of
satisfying]to satisfy claims
against persons licensed under this chapter. Any balance in the fund over
$300,000 at the end of any fiscal year must be set aside and used by the
administrator for education respecting manufactured homes, mobile homes, travel
trailers or commercial coaches.

2. Upon issuance or renewal of the
following licenses by the division, the licensee must pay in addition to the
original or renewal license fee, a fee:

(a) For a dealers or manufacturers original
license, or an original limited dealers license issued
pursuant to section 2 of this act, of $300.

(b) For a dealers or manufacturers renewal
license, or a renewal limited dealers license issued
pursuant to section 2 of this act, of $150.

Fees collected pursuant to this section must be deposited in
the state treasury for credit to the fund.

3. Payments from the fund must be made
only upon an appropriate court order.

________

CHAPTER 783, AB 344

Assembly Bill No.
344Assemblymen Nicholas, Kissam and Bergevin

CHAPTER 783

AN ACT relating to public safety; adopting
comprehensive requirements for the respective responsibilities of skiers and
operators of areas for skiing; providing a penalty; and providing other matters
properly relating thereto.

[Approved June 26, 1987]

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN
SENATE

AND ASSEMBLY, DO ENACT AS FOLLOWS:

Section 1. Title 40 of NRS is
hereby amended by adding thereto a new chapter to consist of the provisions set
forth as sections 2 to 23, inclusive, of this act.

Sec. 2. This chapter may be
cited as the Skier Safety Act.

Sec. 3. As used in this
chapter, unless the context otherwise requires, the words and terms defined in
sections 5 to 12, inclusive, of this act have the meanings ascribed to them in
those sections.

Sec. 4. (Deleted by
amendment.)

Sec. 5. Passenger means a
person who utilizes a ski lift for transportation.

Sec. 6. (Deleted by
amendment.)

Sec. 7. Ski area means the
slopes, trails, runs and other areas under the control of a skiing operator
that are intended to be used for skiing or for the observation of the sport.

Sec. 8. Ski lift means a
device, except for an elevator, that carries, pulls or pushes a person along a
level or inclined path to, from or within a ski area by means of a rope, cable
or other flexible element that is driven by an essentially stationary source of
power.

(a) When he knows that he has insufficient
knowledge or physical ability to use the ski lift safely; or

(b) That is posted as closed or not in
operation;

2. Purposefully embark upon or disembark
from a ski lift, except at an area designated for such a purpose or at the
direction and under the direct supervision of an authorized agent or employee
of a skiing operator;

3. Toss, throw or cast or intentionally
drop, expel or eject an object from a ski lift;

4. Toss, throw or cast an object in the
direction of a ski lift;

5. Fail or refuse to comply with:

(a) Reasonable instructions given to him by an
authorized agent or employee of a skiing operator regarding the use of a ski
lift; or

(b) A sign posted pursuant to sections 16 or 17
of this act;

6. Place any object in the uphill path of
a surface lift;

7. Conduct himself in a manner that
interferes with the safe operation of a ski lift or with the safety of a
passenger or skier; or

8. Ski in an area within the ski area
which is posted, as provided in NRS 207.200, as closed.

Sec. 14. A skier shall, to
the extent that the matter is within his control:

1. Locate and ascertain the meaning of
signs in his vicinity posted pursuant to sections 16 or 17 of this act;

2. Heed warnings and other information
posted by a skiing operator;

3. Remain a safe distance from vehicles,
signs and equipment for grooming snow or for transportation;

4. Avoid skiers in motion when entering a
ski slope, run or trail, and when commencing to ski from a stationary position;

5. Maintain a proper lookout and control
of his speed to avoid downhill objects and skiers to the best of his ability;
and

6. Conduct himself in such a manner as to
avoid injury to persons and property in a ski area.

Sec. 15. A skier shall not:

1. Use a ski unless it is attached to the
skier by a strap or equipped with a device capable of stopping the movement of
the ski when not attached to the skier;

2. Cross the uphill path of a surface
lift, except at locations designated by a skiing operator; or

3. Willfully stop where he obstructs a
ski slope, run or trail, or where he is not safely visible to uphill skiers.

(a) By each ski lift, with information for the
protection and instruction of passengers; and

(b) At or near the points where passengers are
loaded on a ski lift, directing persons who are not familiar with the operation
of the ski lift to ask an authorized agent or employee of the skiing operator
for assistance and instruction.

2. A skiing operator shall prominently
post and maintain signs with the following inscriptions at all ski lifts in the
locations indicated:

(a) Remove pole straps from wrists at an area
for loading skiers;

(b) Safety gate where applicable;

(c) Stay on tracks where applicable;

(d) Keep ski tips up ahead of any point where
skis can regain contact with the ground or snowy surface after a passenger
departs from an area for loading skiers;

(e) Prepare to unload and check for loose
clothing and equipment not less than 50 feet from an area for unloading
skiers; and

(f) Unload here at the area for unloading
skiers.

3. A skiing operator shall inspect a ski
area for the presence and visibility of the signs required to be posted by this
section each day before opening the ski area for business.

Sec. 17. 1. A
skiing operator shall post and maintain a system of signs:

(a) At the entrances to an established ski slope,
run or trail to indicate:

(1) Whether any portion of the ski slope,
run or trail is closed; and

(2) The relative degree of difficulty of
the ski slope, run or trail;

(b) To indicate the boundary of the ski area,
except in heavily wooded areas or other terrain that cannot be skied readily;
and

(c) To warn of each area within the boundary of
the ski area where there is a danger of avalanche by posting signs stating Warning:
Avalanche Danger Area.

2. A skiing operator shall equip vehicles
it uses on or in the vicinity of a ski slope, run or trail with a light visible
to skiers when the vehicle is in motion.

Sec. 18. A sign required to
be posted pursuant to sections 16 and 17 of this act must be adequately
illuminated at night, if the ski area is open to the public at night, and be
readable and recognizable under ordinary conditions of visibility.

Sec. 19. 1. A
skier who sustains a personal injury shall notify the skiing operator or a
member of the ski patrol of the injury as soon as reasonably possible after
discovery of the injury.

2. A skiing operator is not liable for
the death or injury of a person or damages to property caused or sustained by a
skier who knowingly enters an area which is not designated for skiing or which
is outside the boundary of a ski area.

3. A skiing operator shall take
reasonable steps to minimize dangers and conditions within his control.

Sec. 20. (Deleted by
amendment.)

Sec. 21. 1. A
skier shall not ski, or embark on a ski lift that is proceeding predominantly
uphill, while intoxicated or under the influence of a controlled substance as
defined in chapter 453 of NRS, unless in accordance with a prescription issued
to the person by a physician, podiatrist or dentist.

2. A skier who is involved in a collision
in which another person is injured shall provide his name
and current address to the injured person, the skiing operator or a member of
the ski patrol:

injured shall provide his name and current address to the
injured person, the skiing operator or a member of the ski patrol:

(a) Before he leaves the vicinity of the
collision; or

(b) As soon as reasonably possible after leaving
the vicinity of the collision to secure aid for the injured person.

3. A person who violates a provision of
this section is guilty of a misdemeanor.

Sec. 22. A skiing operator
may revoke the license or privilege to ski of a person in a ski area who
violates any of the provisions of sections 13, 14, 15 and 21 of this act.

Sec. 23. This chapter does
not prohibit a county, city or unincorporated town from enacting an ordinance,
not in conflict with the provisions of this chapter, regulating skiers or
skiing operators.

________

CHAPTER 784, SB 589

Senate Bill No.
589Committee on Finance

CHAPTER 784

AN ACT relating to public employees
retirement; making technical corrections to Senate Bill No. 586 of this
session; and providing other matters properly relating thereto.

[Approved June 26, 1987]

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN
SENATE

AND ASSEMBLY, DO ENACT AS FOLLOWS:

Section 1. Section 1 of Senate
Bill No. 586 of this session is hereby amended to read as follows:

Section 1. 1. In
lieu of the increases required by NRS 286.465 for the fiscal years 1987-1988
and 1988-1989, the total rate of contribution to both the public employees
retirement fund and the police and firemens retirement fund must be increased
by one-quarter of 1 percent, cumulatively, on:

(a) July 1, 1987;

(b) October 1, 1987;

(c) January 1, 1988;

(d) April 1, 1988;

(e) July 1, 1988;

(f) October 1, 1988;

(g) January 1, 1989;
and

(h) April 1, 1989.

2. The
increases required pursuant to subsection [2]1 must be implemented beginning with the first
day of the [next succeeding]first regularly scheduled pay period which begins on or after the date of the increase.

AN ACT relating to ethics in government;
providing a period of retention for statements of financial disclosure;
clarifying the definition of public officer; authorizing the commission on
ethics to render opinions involving past and present conduct; revising the
requirements for filing statements of financial disclosure by certain public
officers; clarifying the provision which prohibits a legislator from having an
interest in a contract authorized by the legislature; and providing other
matters properly relating thereto.

[Approved June 26, 1987]

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN
SENATE

AND ASSEMBLY, DO ENACT AS FOLLOWS:

Section 1. Chapter 281 of NRS is
hereby amended by adding thereto a new section to read as follows:

1. Except as
otherwise provided in subsection 2, statements of financial disclosure required
by the provisions of NRS 281.561 and 281.571 must be retained by the secretary
of state for 6 years after the date of filing.

2. For public
officers who serve more than one term in either the same public office or more
than one public office, the period prescribed in subsection 1 begins on the
date of the filing of the last statement of financial disclosure for the last
public office held.

Sec. 2. NRS 281.4365 is
hereby amended to read as follows:

281.4365 1. Public
office means a person elected or appointed to a position which is established
by the constitution of the State of Nevada, a statute of this state or an
ordinance of any of its counties or incorporated cities and which involves the
exercise of a public power, trust or duty . [, except:

1.]As used in this section, the exercise of a public power,
trust or duty includes:

(a) Actions taken in an
official capacity which involve a substantial and material exercise of
administrative discretion in the formation of public policy;

(b) The expenditure of
public money; and

(c) The enforcement of
laws and rules of the state, a county or a city.

2. Public
officer does not include:

(a) Any justice,
judge or other officer of the court system;

[2.](b) A commissioner of deeds; [and

3.](c) Any member of a board, commission or other
body whose function is advisory [.]; or

(d) Any member of a board
of trustees for a general improvement district or
special district whose official duties do not include the formulation of a
budget for the district or the authorization of the expenditure of the
districts money.

or special district whose official
duties do not include the formulation of a budget for the district or the
authorization of the expenditure of the districts money.

Sec. 3. NRS 281.461 is
hereby amended to read as follows:

281.461 1. The commission
shall:

(a) At its first meeting and annually thereafter
elect a chairman from among its members.

(b) Meet regularly at least once in each
calendar quarter , unless there are no requests made for
an opinion pursuant to NRS 281.511, and at other times upon the call of
the chairman.

2. Members of the commission are entitled
to receive a salary of $60 per day while engaged in the business of the
commission.

3. The secretary of state shall designate
a member of his staff to assist the commission in performing the clerical
functions related to the review of statements of financial disclosure pursuant
to NRS 281.561, including the keeping of all necessary records related thereto.

4. The commission may, within the limits
of legislative appropriation:

(a) Employ such persons as are necessary to
carry out any of its duties relating to the administration of its affairs,
other than those relating to the review of statements of financial disclosure;
and

(b) Maintain such facilities as are required to
carry out its functions.

Sec. 4. NRS 281.481 is
hereby amended to read as follows:

281.481 A code of ethical standards is
hereby established as a guide for the conduct of public officers and employees:

1. No public officer or employee may seek
or accept any gift, service, favor, employment, engagement, emolument or
economic opportunity which would tend improperly to influence a reasonable
person in his position to depart from the faithful and impartial discharge of
his public duties.

2. No public officer or employee may use
his position in government to secure or grant unwarranted privileges,
preferences, exemptions or advantages for himself, any member of his household,
any business entity in which he has a [financial]significant pecuniary interest, or any other
person.

3. No public officer or employee may
approve, disapprove, vote, abstain from voting, or otherwise act upon any
matter in which he has a [financial]significant pecuniary interest without disclosing
the full nature and extent of his interest. Such a disclosure [shall]must be
made before the time when he is to perform his duty or concurrently with that
performance. If the officer or employee is a member of a body which makes
decisions, he shall make disclosure to the chairman and other members of the body.
If the officer or employee is not a member of such a body and holds an
appointive office, he shall make disclosure to the supervisory head of his
organization or if he holds an elective office, to the general public in the
area from which he is elected.

4. No public officer or employee may
participate as an agent of government in the negotiation or execution of a
contract between the government and any private business
in which he has a [financial] significant pecuniary interest.

government and any private business in which he has a [financial]significant
pecuniary interest. Unless specifically prohibited by law, a public
officer or employee, as such, is not precluded from making a bid on a
government contract if the contracting process is controlled by rules of open
competitive bidding, the sources of supply are limited, he has not taken part
in developing the contract plans or specifications and he will not be
personally involved in opening, considering or accepting offers.

5. No public officer or employee may
accept any salary, retainer, augmentation, expense allowance or other
compensation from any private source for the performance of his duties as a
public officer or employee.

6. If a public officer or employee
acquires, through his public duties or relationships, any information which by
law or practice is not at the time available to people generally, he may not
use the information to further the [economic]pecuniary interest of himself or any other person
or business entity.

7. No public officer or employee may
suppress any governmental report or other document because it might tend to
affect unfavorably his [private financial]pecuniary interests.

Sec. 5. NRS 281.501 is
hereby amended to read as follows:

281.501 1. In addition to
the general requirements of the code of ethical standards, a member of the
legislative branch should not vote upon but may otherwise participate in the
consideration of a matter with respect to which the independence of judgment of
a reasonable person in his situation would be materially affected by:

(a) His acceptance of a gift or loan;

(b) His [private
financial]pecuniary interest; or

(c) His commitment in a private capacity to the
interests of others.

2. A member of the legislative branch may
vote upon a matter if the benefit or detriment accruing to him as a result of
the decision either individually or in a representative capacity as a member of
a business profession, occupation or group, is not greater than that accruing
to any other member of the business, profession, occupation or group.

3. If a member of the legislative branch
declares to the legislative body or committee in which the vote is to be taken
that he will abstain from voting because of the requirements of this section,
the necessary quorum to act upon and the number of votes necessary to act upon
the matter, as fixed by any statute, ordinance or rule of a board of county
commissioners or governing body of a city, is reduced as though the member
abstaining were not a member of the body or committee.

Sec. 6. NRS 281.511 is
hereby amended to read as follows:

281.511 1. The commission
shall render an opinion interpreting the statutory ethical standards and apply
the standards to a given set of facts and circumstances upon request from a
public officer or employee who is seeking guidance on questions which directly
relate to the propriety of his own past, present or future
conduct as an officer or employee.

2. The commission may render an opinion
interpreting the statutory ethical standards and apply
the standards to a given set of facts and circumstances:

ethical standards and apply the standards to a given set of
facts and circumstances:

(a) Upon request from a specialized or local
ethics committee; or

(b) Upon the commissions own motion regarding
the propriety of conduct by a public officer or employee, if the commission
first determines in an adopted motion that there is just and sufficient cause
to render an opinion concerning the conduct of that public officer or employee,

on the condition that any public officer or employee about
whom an opinion is requested or authorized must be notified immediately by
certified mail that an opinion has been requested or authorized and that he has
a right to appear before the commission and present evidence and argument.

3. The commission shall render the
opinion requested pursuant to this section as expeditiously as possible in
light of the circumstances of the public officer or employee about whom the
opinion is requested, so as to minimize any adverse consequences to him that
may result from any delay in issuing the opinion.

4. Each opinion rendered by the
commission and any motion relating to the opinion is confidential unless:

(a) The public officer or employee acts in
contravention of the opinion, in which case the commission may disclose the
contents of the opinion and any motion related thereto;

(b) It is an opinion requested pursuant to
subsection 1 and the requester discloses the content of the opinion;

(c) It is an opinion requested or issued
pursuant to paragraph (b) of subsection 2 and the person about whom the opinion
was requested discloses the content of the opinion, the request or any motion
or action related thereto; or

(d) It is an opinion requested pursuant to
subsection 2, the commission determines that there is insufficient basis to
render an opinion and the person about whom the opinion was requested has asked
the commission to make public the reasons for not rendering the opinion.

5. If an opinion is requested pursuant to
paragraph (b) of subsection 2 and a motion that there is just and sufficient
cause to render an opinion has been adopted by the commission, the commission
shall:

(a) Notify the person about whom the opinion was
requested of the place and time of the commissions hearing on the matter;

(b) Allow him to be represented by counsel; and

(c) Allow him to hear the evidence presented to
the commission and to respond and present evidence on his own behalf.

The commissions hearing may be held no sooner than 2 weeks
after the notice is given.

6. If any person requesting an opinion
pursuant to subsection 1 or 2 does not:

7. For the purposes of NRS 41.032, the
members of the commission and its employees shall be deemed to be exercising or
performing a discretionary function or duty when taking any action related to
the rendering of an opinion pursuant to this section.

8. The commission shall publish
hypothetical opinions which are abstracted from the opinions rendered under
subsection 1 or 2, for the future guidance of all persons concerned with
ethical standards in government.

9. [Any]A meeting held by the commission to receive
information concerning the propriety of the conduct of any public officer or
employee is not subject to the provision of chapter 241 of NRS.

Sec. 7. NRS 281.521 is
hereby amended to read as follows:

281.521 1. The
commissions opinions may include guidance to a public officer or employee on
questions whether:

[1.](a) A conflict exists between his personal
interest and his official duty.

[2.](b) His official duties involve the use of
discretionary judgment whose exercise in the particular matter would have a
significant effect upon the disposition of the matter.

[3.](c) The conflict would materially affect the
independence of the judgment of a reasonable person in his situation.

[4.](d) He possesses special knowledge which is an
indispensable asset of his public agency and is needed by it to reach a sound
decision.

[5.](e) It would be appropriate for him to withdraw
or abstain from participation, disclose the nature of his conflicting personal
interest or pursue some other designated course of action in the matter.

2. The commissions
opinions may not include guidance to a public officer or employee on questions
regarding the provisions of chapter 294A of NRS.

Sec. 8. NRS 281.551 is
hereby amended to read as follows:

281.551 NRS 281.481 to 281.541,
inclusive, are intended to be directory and preventive
rather than punitive. These sections do not abrogate or decrease the effect of
any of the provisions of the Nevada Revised Statutes which define crimes or
prescribe punishments with respect to the conduct of public officers or employees.

Sec. 9. NRS 281.561 is
hereby amended to read as follows:

281.561 Every candidate for public office
and every public officer shall file with the secretary of state, for review by
the commission, a statement of financial disclosure, as follows:

1. A candidate for nomination , [or]
election or reelection shall file a statement of
financial disclosure no later than the 10th day after the last day to qualify
as a candidate for the office.

2. A public officer appointed to fill the
unexpired term of an elected public officer shall file a statement of financial
disclosure within 6 months after his appointment.

3. A public officer who holds an elective
office and is not running for election to a public
office shall file a statement of financial disclosure [within 6 months]during
the sixth month before the expiration of his term.

4. A public officer who holds an
appointive office shall file statements of financial disclosure:

(a) Within 6 months after his appointment; and

(b) [Within 6
months]During the sixth month before
the expiration of his term, or if he serves at the pleasure of the appointing
authority, [within 6 months]during the sixth month before the expiration of the
term of the appointing authority, or if the appointing authority has no fixed
term, within such period as the commission prescribes.

Sec. 10. NRS 281.575 is
hereby amended to read as follows:

281.575 The secretary of state and each
county or city clerk who receives a declaration of candidacy, acceptance of
candidacy , [or]
affidavit of candidacy or certificate of candidacy shall
give to the candidate the form prescribed by the commission for the making of a
statement of financial disclosure, accompanied by instructions on how to
complete the form, where it must be filed and the time by which it must be
filed.

Sec. 11. NRS 218.605 is
hereby amended to read as follows:

218.605 1. Except as
otherwise provided in subsection 2, it is unlawful for any member of the
legislature to:

(a) Become a contractor under any contract or
order for supplies or any other kind of contract paid for in whole or in part
by money appropriated by the legislature of which he is a member for the state
or any of its departments, or the legislature or either of its houses, or to be
interested, directly or indirectly, as principal, in any kind of contract so
paid.

(b) Be interested in any contract made by the legislature
of which he is a member, or be a purchaser or interested in any purchase or
sale made by the legislature of which he is a member.

2. Any member of the legislature may:

(a) Sell or enter into a contract to sell, to
the state or any of its departments any item [or], commodity , service or
capital improvement, if [he is the only
source of supply of that item or commodity within the state.]:

(1) The sources of
supply for the item, commodity, service or capital improvement are limited;

(2) The
contracting process is controlled by rules of open competitive bidding;

(3) He has not
taken part in developing the plans or specifications for the sale or contract;
and

(4) He will not be
personally involved in opening, considering or accepting any bids for the sale
or contract.

(b) Receive, as direct salary or wages,
compensation for which the original source was a legislative appropriation to
any governmental entity or a private entity not owned or controlled by the
legislator.

(c) Receive, for services as an instructor or
teacher from any county school district or the University of Nevada System,
compensation for which the original source was a
legislative appropriation to any governmental entity or a private entity not
owned or controlled by the legislator.

the original source was a legislative appropriation to any
governmental entity or a private entity not owned or controlled by the
legislator.

3. Any contract made in violation of
subsection 1 may be declared void at the instance of the state or of any other
person interested in the contract except the member of the legislature
prohibited in subsection 1 from making or being interested in the contract.

4. Any person violating subsection 1 is
guilty of a gross misdemeanor and [shall forfeit]forfeits his office.

AN ACT relating to taxation; making
various changes concerning the collection and distribution of the tax on the
transfer of estates of decedents; adopting the Uniform Act on Interstate
Arbitration of Death Taxes and the Uniform Act on Interstate Compromise of
Death Taxes; creating advisory committees to make recommendations for
expenditure of the proceeds of the tax on the transfer of estates of decedents;
providing a penalty; and providing other matters properly relating thereto.

[Approved June 26, 1987]

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN SENATE

AND ASSEMBLY, DO ENACT AS FOLLOWS:

Section 1. The new chapter added
to Title 32 of NRS by chapter 21, Statutes of Nevada 1987, is hereby
amended by adding thereto the provisions set forth as sections 2 to 93,
inclusive, of this act.

Sec. 2. As
used in sections 2 to 39, inclusive, of this act, unless the context otherwise
requires, the words and terms defined in sections 3 to 12, inclusive, of this
act, have the meanings ascribed to them in those sections.

Sec. 3. Decedent
or transferor means any person by or from whom a transfer is made, and
includes any testator, interstate, grantor, bargainor, vendor, assignor, donor,
joint tenant or insured.

Sec. 4. Estate
or property means the real or personal property or interest therein of a
decedent or transferor, and includes:

1. All intangible
personal property of a resident decedent within or outside this state or
subject to the jurisdiction of this state; and

2. All intangible
personal property in Nevada belonging to a deceased nonresident of the United
States, including all stock of a corporation organized under the laws of Nevada
or which has its principal place of business or does the major part of its
business in Nevada or of a federal corporation or
national bank which has its principal place of business or does the major part
of its business in Nevada, except:

Sec. 7. Nonresident
or nonresident decedent means a decedent who was domiciled outside of Nevada
at the time of his death.

Sec. 8. Personal
representative means the personal representative of the decedent or, if there
is no personal representative appointed, qualified and acting within this
state, any person who is in actual or constructive possession of any property
included in the gross estate of the decedent.

Sec. 9. Resident
or resident decedent means decedent who was domiciled in Nevada at the time
of his death.

Sec. 11. Transfer
includes the passage of any property, or any interest therein or income
therefrom, in possession or enjoyment, present or future, in trust or
otherwise.

Sec. 12. Transferee
means any person to whom a transfer is made, and includes any legatee, devisee,
heir, next of kin, grantee, donee, vendee, assignee, successor, survivor or
beneficiary.

Sec. 13. If
a decedent leaves property having a situs in this state, and leaves other property
having a situs in another state, the portion of the federal credit which is
attributable to the property having a situs in Nevada must be determined in the
following manner:

1. For the purpose
of apportioning the federal credit, the gross value of the property must be
that value finally determined for the purposes of the federal estate tax.

2. The federal
credit must be multiplied by the percentage which the gross value of property
having a situs in Nevada bears to the gross value of the entire estate subject
to federal estate tax.

3. The product
determined pursuant to subsection 2 must be the portion of the federal credit
which is attributable to property having a situs in Nevada.

Sec. 14. 1. The
personal representative of every estate subject to the tax imposed by section 2
of chapter 21, Statutes of Nevada 1987, who is required to file a federal
estate tax return shall file with the department on or before the federal
estate tax return is required to be filed, any documentation concerning the
amount due which is required by the department.

2. The department
shall adopt regulations to require sufficient documentation of the amount due
pursuant to this chapter.

Sec. 15. If
the personal representative has obtained an extension of time for filing the
federal estate tax return, the filing required by section 14 of this act must
be similarly extended until the end of the period granted in the extension of
time for the federal estate tax return. A true copy of the federal extension
must be filed with the department.

Sec. 16. If
the personal representative files an amended federal estate tax return, he
shall immediately file with the department an amended return with a true copy
of the amended federal estate tax return. If the personal representative is
required to pay an additional tax under section 2 of chapter 21, Statutes of
Nevada 1987, pursuant to the amended return, he shall pay that additional tax,
together with any interest as provided in section 25 of this act at the same
time the amended return is filed.

Sec. 17. Upon
final determination of the federal estate tax due, the personal representative
shall, within 60 days after that determination, give written notice of it to
the department. If any additional tax is due under section 2 of chapter 21,
Statutes of Nevada 1987, by reason of this determination, the personal
representative shall pay the tax, together with interest as provided in section
25 of this act, at the same time he files the notice.

Sec. 18. If
the return provided for in section 14 of this act is not filed within the time
specified in that section or the extension specified in section 15 of this act,
then the personal representative shall pay, in addition to the interest
provided in section 25 of this act, a penalty equal to 5 percent of the tax
due, as finally determined, for each month or portion of a month during which
that failure to file continues, not exceeding 25 percent in the aggregate,
unless it is shown that there was reasonable cause for the failure to file. If
a similar penalty for failure to file timely the federal estate tax return is
waived, that waiver shall be deemed to constitute reasonable cause for purposes
of this section.

Sec. 19. 1. In
a case not involving a false or fraudulent return or failure to file a return,
if the department determines at any time after the tax is due, but not later
than 4 years after the return is filed, that the tax disclosed in any return
required to be filed by sections 3 to 39, inclusive, of this act, is less than the
tax disclosed by its examination, a deficiency must be determined. That
determination may also be made within such time after the expiration of the
4-year period as may be agreed upon in writing between the department and the
personal representative.

2. For purposes of
this section, a return filed before the last day prescribed by law for filing
that return must be considered as filed on that last day.

Sec. 20. In
the case of a false or fraudulent return or failure to file a return, the
department may determine the tax at any time.

Sec. 21. If
a deficiency has been determined in an erroneous amount, the department may,
within 3 years after the erroneous determination was made, set aside the determination or issue an amended determination
in the correct amount.

set aside the determination or issue
an amended determination in the correct amount.

Sec. 22. The
department shall give notice of the deficiency determined, together with any
penalty for failure to file a return, by personal service or by mail to the
person filing the return at the address stated in the return, or, if no return
is filed, to the person liable for the tax. Copies of the notice of deficiency
may in the same manner be given to such other persons as the department deems
advisable.

Sec. 23. If
it is claimed that a deficiency has been determined in an erroneous amount, any
person who is liable for the tax may, within 3 years after the determination
was made, bring an action against the State of Nevada in the district court
having jurisdiction over the estate to have the tax modified in whole or in
part.

1. Must be paid by
the personal representative to the extent of assets subject to his control.
Liability for payment of the tax continues until the tax is paid.

2. Is due on the
date of the decedents death.

3. Is delinquent
at the expiration of 9 months from the date on which it becomes due, if not
paid within that time.

Sec. 25. 1. The
tax imposed by section 2 of chapter 21, Statutes of Nevada 1987, does not bear
interest if it is paid before the date on which it otherwise becomes
delinquent. If the tax is paid after that date, the tax bears interest at the
rate set by the executive director, from the date it become delinquent until it
is paid.

2. The executive
director shall set and maintain the rate of interest for late payments at the
highest rate permissible pursuant to section 4 of article 10 of the Nevada
constitution.

Sec. 26. Every
payment received by the department on the tax imposed by section 2 of chapter
21, Statutes of Nevada 1987, must be applied:

1. To any interest
due on the tax;

2. To any penalty;
and

3. If there is any
balance, to the tax itself,

in that order.

Sec. 27. 1. If
any personal representative fails to pay any tax imposed by section 2 of
chapter 21, Statutes of Nevada 1987, for which he is liable before the date the
tax becomes delinquent, he must, on motion of the department, be required by
the district court having jurisdiction over the estate to execute a bond to the
State of Nevada in an amount equal to twice the amount of the tax, with such
sureties as the court may approve, conditioned for the payment of the tax, plus
interest on the tax at the rate of interest set by the executive director
pursuant to section 25 of this act commencing on the date the tax became
delinquent, within a certain time to be fixed by the court and specified in the
bond.

2. The bond must
be filed in the office of the clerk of the court, and a certified copy must be
immediately transmitted to the department.

3. If the bond is
not filed within 20 days after the date of the filing of the order requiring
it, the letters of the personal representative affected must be revoked upon
motion of the department.

Sec. 28. 1. Whenever
the department determines that an overpayment of the tax due under section 2 of
chapter 21, Statutes of Nevada 1987, has been made, the person making payment
is entitled to a refund of the amount erroneously paid on presentation of proof
satisfactory to the department that he is entitled to a refund.

2. An application
for the refund must be made to the department within 1 year after the date the
federal estate tax has been finally determined.

3. On proof
satisfactory to the department that the applicant is entitled to a refund, the
department shall refund that amount plus interest as provided by section 29 of
this act.

4. The amount of
the refund must be paid from the estate tax account in the state general fund.

Sec. 29. Interest
must be paid upon any overpayment of the tax due under section 2 of chapter 21,
Statutes of Nevada 1987, at the rate of interest set by the executive director
pursuant to section 25 of this act. That interest must be allowed from the date
on which payment of the tax would have become delinquent, if not paid, or the
date of actual payment, whichever is later, to a date preceding the date of the
refund by not more than 30 days, as determined by the department.

Sec. 30. The
state may enforce its claim for any tax imposed by section 2 of chapter 21,
Statutes of Nevada 1987, and enforce the lien of the tax by a civil action in
any court of competent jurisdiction against any person liable for the tax or
against any property subject to the lien.

Sec. 31. 1. If
any personal representative fails to pay any tax, interest or penalty at the
time that it becomes due, the amount thereof, including penalties and interest,
together with any costs in addition thereto, is a perfected and enforceable
lien for taxes. Except as otherwise provided in subsections 2 to 5, inclusive,
the provisions of NRS 360.420 to 360.560, inclusive, apply to the lien.

2. If the lien is
not extinguished pursuant to subsection 3, 4 or 5, or otherwise released or
discharged, it expires 10 years from the time a determination of deficiency is
issued if, within that period, no notice of the lien has been recorded or filed
as provided in NRS 360.450.

3. If suit or a
proceeding for collection of the tax has not been instituted within 5 years
after the tax becomes due, the lien ceases as to any bona fide purchaser, mortgagee
or lessee of the property subject to the lien.

4. If property
subject to the lien is sold, exchanged or otherwise transferred pursuant to the
laws of this state relating to wills and the estates of deceased persons, the
lien ceases as to the property and attaches to the proceeds or other
consideration received.

5. If property
subject to the lien is mortgaged, hypothecated or leased pursuant to the laws
of this state relating to wills and the estates of deceased persons, the lien
becomes subject to and subordinate to the rights and interest of the mortgagee, lessee or other person so secured or
created, and attaches to the proceeds of the mortgage, hypothecation or lease.

interest of the mortgagee, lessee or
other person so secured or created, and attaches to the proceeds of the
mortgage, hypothecation or lease.

Sec. 32. At
any time within 10 years after a person is delinquent in the payment of any
tax, interest or penalty, or within 10 years after the last recording or filing
of a notice of a lien for taxes, the department may issue a warrant for the
enforcement of any liens and for the collection of any amount required to be
paid to the state. The warrant must be directed to any sheriff and has the same
effect as a writ of execution. The warrant must be levied and sale made
pursuant to it in the same manner and with the same effect as a levy of and
sale pursuant to a writ of execution.

Sec. 33. 1. The
department may pay or advance to the sheriff the same fees, commissions and
expenses for his services as are provided by law for similar services pursuant
to a writ of execution. The department, and not the court, shall approve the
fees for publication in a newspaper.

2. The fees,
commissions and expenses are obligations of the person required to pay the tax,
interest or penalty and may be collected from him by virtue of the warrant or
in any manner provided for the collection of the tax.

Sec. 34. 1. At
any time after a tax imposed by section 2 of chapter 21, Statutes of Nevada
1987, is delinquent, the department may have a writ of execution issued for the
enforcement of any judgment rendered in respect to the tax.

2. The writ must
be executed against any property of the person liable for payment of the tax,
or against any property subject to the lien for the tax.

3. The department
must not be charged a fee for the issuance of execution of the writ.

Sec. 35. Proceedings
for the collection of any tax imposed by section 2 of chapter 21, Statutes of
Nevada 1987, may be commenced at any time after the tax is due and within 10
years from the time a determination of delinquency is issued.

Sec. 36. In
any proceeding for the enforcement of the tax imposed by section 2 of chapter
21, Statutes of Nevada 1987, a certificate by the department showing the amount
due is prima facie evidence of:

1. The imposition
of the tax;

2. The fact that
it is due; and

3. Compliance by
the department with all the provisions of this chapter in relation to the
computation and determination of the tax.

Sec. 37. No
injunction or other legal or equitable process must issue in any suit, action
or proceeding in any court against this state or any officer of this state to
prevent or enjoin the collection of any tax imposed by section 2 of chapter 21,
Statutes of Nevada 1987.

Sec. 38. The
department may bring suits in the courts of other states to collect taxes
payable under this chapter. An official of another state which extends a like
comity to this state may sue for the collection of similar taxes in the courts
of this state. A certificate by the secretary of state of another state, under
the great seal of that state, that an official thereof has authority to collect its estate or other transfer taxes is conclusive
evidence of the authority of that official in any suit for the collection of
those taxes in any court of this state.

to collect its estate or other
transfer taxes is conclusive evidence of the authority of that official in any
suit for the collection of those taxes in any court of this state.

Sec. 39. The
remedies of the state for the enforcement of the tax imposed by section 2 of
chapter 21, Statutes of Nevada 1987, are cumulative, and no action taken by the
department or any other state officer or agency constitutes an election by the
state or any of its officers to pursue any remedy to the exclusion of any other
remedy for which provision is made.

Sec. 40. Sections
40 to 44, inclusive, of this act, may be cited as the Uniform Act on Interstate
Compromise of Death Taxes.

Sec. 41. As
used in sections 42, 43 and 44 of this act, unless the context otherwise
requires, state means any state, territory or possession of the United
States, and the District of Columbia.

Sec. 42. The
department may compromise with the personal representative the tax, including
any interest and penalty thereon, payable on the estate of any decedent who it
is claimed was not a resident of this state at the time of his death.

Sec. 43. If
the department claims that a decedent was domiciled in this state at the time
of his death and the taxing authorities of another state or states make a like
claim on behalf of their state or states, the department may enter into a
written agreement of compromise with the other taxing authorities and the
executor or administrator that a certain sum will be accepted in full
satisfaction of any and all death taxes imposed by this state, including any
interest to the date of filing the agreement. The agreement must also fix the
amount to be accepted by the other states in full satisfaction of death taxes.
The executor or administrator is hereby authorized to make that agreement.
Either the department or the executor or administrator shall file the
agreement, or a duplicate, with the department. The tax shall be deemed conclusively
fixed as provided in the agreement. Unless the tax is paid within 90 days after
filing the agreement, interest accrues upon the amount fixed in the agreement
but the time between the decedents death and the filing must not be included
in computing the interest.

Sec. 44. Sections
40 to 44, inclusive, of this act, must be so interpreted and construed as to
effectuate its general purpose to make uniform the law of those states which
enact it.

Sec. 45. Sections
45 to 57, inclusive, of this act, may be cited as the Uniform Act on Interstate
Arbitration of Death Taxes.

Sec. 46. As
used in sections 46 to 57, inclusive, of this act, unless the context otherwise
requires:

1. Board means
the board of arbitrators selected pursuant to section 47 of this act.

2. State means
any state, territory or possession of the United States, and the District of
Columbia.

Sec. 47. If
the department claims that a decedent was domiciled in this state at the time
of his death and the taxing authorities of another state or states make a like claim on behalf of their state or states,
the department may enter into a written agreement with the other taxing
authorities and with the executor or administrator to submit the controversy to
the decision of a board consisting of one or any uneven number of arbitrators.

states make a like claim on behalf of
their state or states, the department may enter into a written agreement with
the other taxing authorities and with the executor or administrator to submit
the controversy to the decision of a board consisting of one or any uneven
number of arbitrators. The executor or administrator is hereby authorized to
make the agreement. The parties to the agreement shall select the arbitrator or
arbitrators.

Sec. 48. The
board shall hold hearings at such times and places as it may determine, upon
reasonable notice to the parties to the agreement, all of whom are entitled to
be heard, to present evidence and to examine and cross-examine witnesses.

Sec. 49. The
board may administer oaths, take testimony, subpena and require the attendance
of witnesses and the production of books, papers and documents and issue
commissions to take testimony. Subpenas may be signed by any member of the
board. In case of failure to obey a subpena, any judge of a court of record of
this state, upon application by the board, may make an order requiring
compliance with the subpena, and the court may punish failure to obey the order
as a contempt.

Sec. 50. The
board shall, by majority vote, determine the domicile of the decedent at the
time of his death. This determination is final for purposes of imposing and
collecting death taxes but for no other purpose.

Sec. 51. Except
as provided in section 49 of this act in respect of the issuance of subpenas,
all questions arising in the course of the proceeding must be determined by
majority vote of the board.

Sec. 52. The
department, the board or the executor or administrator shall file the
determination of the board as to domicile, the record of the boards
proceedings and the agreement or a duplicate of the agreement entered into
pursuant to section 47 of this act, with the authority having jurisdiction to
determine the death taxes in the state determined to be the domicile, and shall
file copies of all of those documents with the authorities that would have been
empowered to determine the death taxes in each of the other states involved.

Sec. 53. If
it is determined by the board that the decedent died domiciled in this state,
interest, if otherwise imposed by law, for nonpayment of death taxes between
the date of the agreement and of filing of the determination of the board as to
domicile, must not exceed 12 percent per annum.

Sec. 54. The
provisions of sections 45 to 57, inclusive, of this act, do not prevent a
written compromise at any time, if otherwise lawful, by all parties to the
agreement made pursuant to section 47 of this act, fixing the amounts to be
accepted by this and any other state involved in full satisfaction of death
taxes.

Sec. 55. The
compensation and expenses of the members of the board and its employees may be
agreed upon among those members and the executor or administrator, and if they
cannot agree shall be fixed by the probate court of the state determined by the
board to be the domicile of the decedent. The amounts so agreed upon or fixed
shall be deemed an expense of administration and are payable by the executor or
administrator.

Sec. 56. Sections
45 to 57, inclusive, of this act, apply only to cases in which each of the
states involved has a law identical with or substantially similar to sections
45 to 57, inclusive, of this act.

Sec. 57. Sections
45 to 57, inclusive, of this act, must be so interpreted and construed as to
effectuate its general purpose to make uniform the law of those states which
enact it.

Sec. 58. As
used in sections 58 to 76, inclusive, of this act, unless the context otherwise
requires, the words and terms defined in sections 59 to 64, inclusive, of this
act, have the meanings ascribed to them in those sections.

Sec. 59. Board
means a board of arbitration appointed pursuant to section 68 of this act.

Sec. 60. Death
tax means any tax levied by a state on account of the transfer or shifting of
economic benefits in property at death, or in contemplation thereof, or
intended to take effect in possession or enjoyment at or after death, whether
denominated an inheritance tax, transfer tax, succession tax, estate
tax, death duty, death dues or otherwise.

Sec. 61. Executor
means an executor of the will or administrator of the estate of the decedent,
but does not include an ancillary administrator or administrator with the will
annexed if an executor named in the will has been appointed and has qualified
in another state.

Sec. 62. Interested
person means any person who may be entitled to receive, or who has received,
any property or interest which may be required to be considered in computing
the death tax of any state involved.

Sec. 63. State
means any state, territory or possession of the United States, or the District
of Columbia.

Sec. 64. Taxing
official means the department or the designated taxing authority of a
reciprocal state.

Sec. 65. 1. If
this state and one or more other states each claims that it was the domicile of
a decedent at his death, at any time before the commencement of legal action
for determination of domicile within this state or within 60 days thereafter,
any executor, or the taxing official of any such state, may elect to invoke the
provisions of sections 58 to 76, inclusive, of this act. The executor or taxing
official shall send a notice of that election by registered mail, return
receipt requested, to the taxing official of each such state and to each
executor, ancillary administrator and interested person.

2. Within 40 days
after the receipt of the notice of election, any executor may reject that
election by sending a notice, by registered mail, return receipt requested, to
all persons originally required to be sent a notice of election. When an
election has been rejected by an executor, no further proceedings must be had
under sections 58 to 76, inclusive, of this act. If the election is not
rejected within the 40-day period, the dispute as to death taxes must be
determined solely as provided in sections 58 to 76, inclusive, of this act. No
other proceedings to determine or assess those death taxes must thereafter be
maintained in any court of this state or any other state.

Sec. 66. If
an election is made and not rejected, the department may enter into a written
agreement with the other taxing officials involved and with the executors to
accept a certain sum in full payment of any death taxes, together with interest
and penalties, that may be due this state. This agreement must fix the amount
to be paid the other states involved in the dispute.

Sec. 67. If
it appears that an agreement cannot be reached, as provided in section 66 of
this act, or if 1 year has elapsed from the date of the election without an
agreement having been reached, the domicile of the decedent at the time of his
death must be determined solely for the purposes of death taxes as provided in
sections 58 to 76, inclusive, of this act.

Sec. 68. If
only this state and one other state are involved, the department and the taxing
official of the other state shall each appoint a member of a board of
arbitration, and these members shall appoint the third member of the board. If
this state and more than one other state are involved, the taxing officials
thereof shall agree upon the authorities charged with the duty of administering
the laws relating to death taxes in three states not involved in the dispute
and each of these authorities shall appoint a member of the board of
arbitration. The board shall select one of its members as chairman.

Sec. 69. The
board shall hold hearings at such places as are deemed necessary, upon
reasonable notice to the executors, ancillary administrators, all other
interested persons and the taxing official of the states involved, all of whom
are entitled to be heard.

Sec. 70. The
board may administer oaths, take testimony, subpena witnesses and require their
attendance, require the production of books, papers and documents and issue
commissions to take testimony. Subpenas may be issued by any member of the
board. Failure to obey a subpena may be punished by any court of record in the
same manner as if the subpena had been issued by that court.

Sec. 71. Whenever
practicable the board shall apply the rules of evidence then prevailing in the
federal courts under the Federal Rules of Civil Procedure.

Sec. 72. The
board shall determine the domicile of the decedent at the time of his death.
This determination is final and conclusive and binds this state, and all of its
judicial and administrative officials on all questions concerning the domicile
of the decedent for the purpose of death taxes. If the board does not render a
determination within 1 year from the time that it is fully constituted, all
authority of the board ceases and the bar to court proceedings set forth in
section 65 of this act no longer exists.

Sec. 73. The
reasonable compensation and expenses of the members of the board and its
employees must be agreed upon among those members, the taxing officials
involved and the executors. If an agreement cannot be reached, compensation and
expenses must be determined by those taxing officials or, if they cannot agree,
by the appropriate probate court of the state determined to be the domicile.
That amount must be borne by the estate and shall be deemed an expense of
administration.

Sec. 74. The
determination of the board and the record of its proceedings must be filed with
the authority having jurisdiction to assess the death tax in the state
determined to be the domicile of the decedent and with the authorities which
would have had jurisdiction to assess the death tax in each of the other states
involved if the decedent had been found to be domiciled therein.

Sec. 75. Notwithstanding
the commencement of a legal action for determination of domicile within this
state or the commencement of an arbitration proceeding, the department may in
any case enter into a written agreement with the other taxing officials
involved and with the executors to accept a certain sum in full payment of any
death tax, together with interest and penalties, that may be due this state at
any time before that proceeding is concluded. The agreement shall be deemed to
fix the amount to be paid the other states involved in the dispute. Upon the
filing of the agreement with the department, an assessment must be made as
provided in that agreement. The assessment finally and conclusively fixes the
amount of death tax due this state. If the aggregate amount payable under the
agreement or under an agreement made in accordance with the provisions of
section 66 of this act to the states involved in less than the minimum credit
allowable to the estate against the federal estate tax, the executor shall also
pay to this state the same percentage of the difference between that aggregate
amount and the amount of the credit as the amount payable to this state under
the agreement bears to the aggregate amount.

Sec. 76. If
the board determines that a decedent dies domiciled in this state, the total
amount of interest and penalties for nonpayment of the tax, between the date of
the election and the final determination of the board, must not exceed the rate
of interest set by the executive director pursuant to section 25 of this act of
the amount of the taxes.

Sec. 77. The
district court which has jurisdiction in probate of the estate of any decedent
shall hear and determine all questions relative to any tax imposed by this
chapter, whether or not the property listed in the estate tax return, or any
portion thereof, is in the estate.

Sec. 78. In
the case of a decedent who was not a resident of this state at the time of his
death, the district court of the county in which the decedents real property
is situated, or, if he had no real property in this state, the district court
of the county in which any of his personal property is situated, has
jurisdiction to hear and determine all questions relative to any tax imposed by
this chapter. If the decedent leaves property in more than one county, the
district court of the county whose jurisdiction is first invoked has exclusive
jurisdiction.

Sec. 79. The
department must not be charged a fee for filing, recording or certifying any
petition, lis pendens, decree or order for taking any oath or acknowledgment,
in any proceedings under this chapter. No undertaking may be required from the
department or the state in any such proceeding.

Sec. 80. The
department may adopt regulations relating to the administration and enforcement
of this chapter, and may prescribe the extent, if
any, to which any regulation is applied to an estate without retroactive
effect.

extent, if any, to which any regulation
is applied to an estate without retroactive effect.

Sec. 81. The
department shall, without charge, distribute a copy of this chapter to any
person who requests it.

Sec. 82. Whenever
the department is cited as a party to any proceeding or action to determine any
tax imposed by this chapter, or whenever the department deems it necessary for
the better enforcement of this chapter to secure evidence of the evasion of, or
to commence or appear in any proceeding or action to determine, any such tax,
the department may, with the consent and approval of the attorney general:

1. Employ any
attorney or other person to act for or represent the department on the states
behalf.

2. Incur any
reasonable and necessary expense for and incident to that employment.

Sec. 83. The
department may conduct a hearing at any time or place to determine whether a
tax is due under this chapter.

Sec. 84. For
purposes of a hearing pursuant to section 83 of this act, the department has:

1. Jurisdiction to
require the attendance of any person who the department may have reason to
believe possesses knowledge of any facts that will aid the department in the
determination of the tax; and

2. All the powers
of a master of the district court.

Sec. 85. The
department may issue subpenas to:

1. Compel the
attendance of any person or the production of books and papers.

2. Determine the
amount of any tax due under this chapter.

Sec. 86. On
the filing by the department of a petition asking the court to do so, the
district court of the county in which a hearing is held may compel compliance
with any subpena issued by the department.

Sec. 87. The
department may examine and take the testimony under oath of any person at a
hearing concerning the determination of any tax due under this chapter.

Sec. 88. Any
person compelled to attend a hearing before the department is entitled to fees
for attendance in an amount to be determined by the department and to his
expenses of attendance. The fees and expenses are a part of the cost of
administering this chapter.

Sec. 89. All
information and records acquired by the department or any of its employees
pursuant to this chapter are confidential in nature, and except insofar as may
be necessary for the enforcement of this chapter or as may be permitted by this
chapter, must not be disclosed.

Sec. 90. 1. All
money received by the board of regents of the University of Nevada pursuant to
paragraph (b) of subsection 1 of section 4 of chapter 21, Statutes of Nevada
1987, must be accounted for separately in the University of Nevada System
Endowment Fund.

2. The money in
the account must be invested pursuant to the same investment policies as the
other money in the endowment fund is invested.

All interest and income earned on the
money in the account must be credited to the account.

3. The money in
the account must only be expended as follows:

(a) The board of regents
may spend $2,500,000 of the money in the account each year.

(b) Until the principal
in the account is sufficient to yield income of $2,500,000 per year, all
revenue deposited in the account in excess of the $2,500,000 allocated pursuant
to paragraph (a) must remain in the account.

(c) In addition to the
amount allowed pursuant to paragraph (a), the board of regents may spend any
money in the account which is not part of the principal necessary to yield
income of $2,500,000 per year.

(d) Any money expended
pursuant to the provisions of paragraph (a) or (c) must be approved by the
legislature when in regular session or by the interim finance committee when
the legislature is not in regular session.

Sec. 91. 1. There
is hereby created in the state treasury a trust fund for the education of
pupils. The superintendent of public instruction is responsible for the
administration of the trust fund. All money held by the state treasurer or
received by the superintendent of public instruction for that purpose must be
deposited in the trust fund.

2. The money in
the trust fund must be invested as the money in other state funds is invested.
All interest earned on the deposit or investment of the money in the trust fund
must be credited to the trust fund.

3. The
superintendent of public instruction may only expend in any year an amount
equal to the balance of the trust fund at the end of the preceding calendar
year, if approved by the legislature when in regular session or by the interim
finance committee when the legislature is not in regular session. Claims
against the fund must be paid as other claims against the state are paid.

4. Money in the
trust fund must only be used to enhance actual instruction in the classroom of
pupils in kindergarten through grade 12. Money in the trust fund must not be
used to:

(a) Pay the salaries of
personnel.

(b) Settle or arbitrate
disputes between a recognized organization of employees of a school district
and the school district.

(c) Reduce the amount of
money which would otherwise be made available for elementary and secondary
education in the absence of this act.

Sec. 92. 1. There
is hereby created the committee on the estate tax account for the endowment of
the University of Nevada System, composed of:

(a) Two members of the
board of regents of the University of Nevada System, appointed by the chairman
of the board with the approval of the other members.

(b) Two members who are
administrators of the University of Nevada System, appointed by the chancellor
of the University of Nevada System.

(c) Two members who are
members of the faculty of the University of Nevada System, appointed by the
faculty.

(d) One member who is a
student, appointed by the student governments of the University of Nevada System.

2. If any
authority having the power to appoint a member of the committee ceases to
exist, the governor shall exercise that power in a manner consistent with the
intent of this section.

3. The member of
the committee who is appointed pursuant to paragraph (d) of subsection 1 shall
serve a term of 1 year. All other members of the committee shall serve terms of
3 years.

4. The committee
shall make recommendations to the board of regents concerning the expenditure
of the money in the estate tax account in the endowment fund.

Sec. 93. 1. There
is hereby created the committee on the trust fund for the education of pupils,
composed of:

(a) Three members of the
state board of education.

(b) Two members who are
certificated teachers currently employed by a school district in this state,
appointed by the governor from a list submitted to him by a professional
organization of teachers in this state.

(c) One member of a
school board, appointed by the governor from a list submitted to him by the
Nevada Association of School Boards.

(d) One member who is a
school administrator appointed by the governor from a list submitted to him by
the Nevada Association of School Administrators.

2. The committee
shall make recommendations to the legislature when in regular session or the
interim finance committee when the legislature is not in regular session on the
expenditure of the money in the trust fund for the education of pupils.

3. The
recommendations of the committee must include a plan for the establishment of
an endowment made up from a portion of the money deposited in the trust fund
for the education of pupils. The plan must provide for an endowment in an
amount which will be sufficient to yield an annual income which is
approximately equal to the estimated annual amount deposited in the trust fund
for the education of pupils.

4. The committee
may recommend that all or any part of the money in the trust fund for the
education of pupils, including the endowment, be invested with the money in the
University of Nevada System Endowment Fund. Any money so invested must be
accounted for separately.

Sec. 4. 1. The
department shall deposit all payments received pursuant to section 2 of this
act in the state treasury [for]:

(a) For
credit to the estate tax account in the state general fund [.], an amount
determined by the department as necessary to pay the costs of administration of
this chapter and to refund any overpayments of tax.

(b) For
credit to the estate tax account for the endowment of the University of Nevada
System, 50 percent of the remainder after deducting the amount pursuant to
paragraph (a).

(c) For
credit to the trust fund for the education of pupils, 50 percent of the remainder after deducting the amount pursuant to
paragraph (a).

Sec. 96. 1. For
the biennium beginning on July 1, 1987, the amount of money which the board of
regents is authorized to spend pursuant to section 90 of this act is in
addition to any other money they are authorized by the legislature to spend as
a part of the executive budget approved by the legislature.

2. No money in the trust fund for the
education of pupils may be spent before July 1, 1989.

Sec. 97. Sections 2 to 93,
inclusive, of this act, apply only to estates subject to the tax imposed by
section 2 of chapter 21, Statutes of Nevada 1987.

Sec. 98. This act becomes
effective upon passage and approval.

________

CHAPTER 787, AB 891

Assembly Bill No.
891Committee on Ways and Means

CHAPTER 787

AN ACT relating to employees in the
unclassified service of the state; increasing certain salaries; making an
appropriation; and providing other matters properly relating thereto.

[Approved June 26, 1987]

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN
SENATE

AND ASSEMBLY, DO ENACT AS FOLLOWS:

Section 1. The following
state officers and employees in the unclassified service of the State of Nevada
are entitled to receive annual salaries of not more than the approximate
maximum amounts set forth following their specified titles or positions:

Sec. 2. 1. There
is hereby appropriated from the state general fund to the state board of
examiners for reimbursement to any department, commission or agency of the
State of Nevada, including the judicial branch of government, which receives
part or all of its funding from the state general fund, for the difference
between the maximum amount allowed in section 1 of this act and the amount
budgeted for that purpose:

For the fiscal year 1987-88...................................................................... $559,762

For the fiscal year 1988-89...................................................................... 559,762

2. There is hereby appropriated from the
state highway fund to the state board of examiners for reimbursement to a state
agency which receives part or all of its funding from the
state highway fund for the difference between the maximum amount allowed in
section 1 of this act and the amount budgeted for that purpose:

or all of its funding from the state highway fund for the
difference between the maximum amount allowed in section 1 of this act and the
amount budgeted for that purpose:

For the fiscal year 1987-88...................................................................... $34,258

For the fiscal year 1988-89...................................................................... 34,258

3. Any balance of the sums appropriated
by this section remaining at the end of the respective fiscal years must not be
committed for expenditure after June 30 and reverts to the fund from which it
was appropriated as soon as all payments of money committed have been made.

________

CHAPTER 788, SB 313

Senate Bill No.
313Committee on Commerce and Labor

CHAPTER 788

AN ACT relating to marriage and family
therapy; creating a board of examiners for marriage and family therapists;
making various changes concerning marriage and family therapists; providing a
penalty; and providing other matters properly relating thereto.

[Approved June 26, 1987]

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN
SENATE

AND ASSEMBLY, DO ENACT AS FOLLOWS:

Section 1. NRS 629.031 is hereby
amended to read as follows:

629.031 Provider of health care means a
physician licensed under chapter 630, 630A or 633 of NRS, dentist, licensed
nurse, dispensing optician, optometrist, registered physical therapist,
podiatrist, licensed psychologist, licensed marriage and
family therapist, chiropractor, doctor of traditional Oriental medicine
in any form, medical laboratory director or technician, pharmacist or a
licensed hospital as the employer of any such person.

Sec. 1.5. NRS 641.029 is
hereby amended to read as follows:

641.029 This chapter does not apply to:

1. A physician licensed to practice in
this state.

2. A person [who
is] licensed to practice dentistry in this state.

3. A person [certified]licensed as a marriage and family [counselor]therapist
under chapter 641A of NRS.

4. A person certified as a counselor by
the bureau of alcohol and drug abuse of the rehabilitation division of the
department of human resources.

5. Any clergyman.

Sec. 2. (Deleted by
amendment.)

Sec. 3. Chapter 641A of NRS
is hereby amended by adding thereto a new section to read as follows:

The board shall issue a license
to an applicant who meets the requirements imposed pursuant to this chapter. A
license expires on January 1, 2 years after the date on which it is issued or
renewed.

641A.010 The practice of marriage and
family [counseling]therapy is hereby declared a learned profession, profoundly affecting public safety and welfare and
charged with the public interest, and therefore subject to protection and
regulation by the state.

Sec. 7. NRS 641A.030 is
hereby amended to read as follows:

641A.030 Board means the board of examiners for marriage and family [counselor examiners.]therapists.

Sec. 8. NRS 641A.040 is
hereby amended to read as follows:

641A.040 [Certificate]License means a [certificate
of registration]license issued by the
board pursuant to this chapter to practice as a marriage and family [counselor.]therapist.

Sec. 9. NRS 641A.050 is
hereby amended to read as follows:

641A.050 [Certificatee]Licensee means a person [certified]licensed as a marriage and family [counselor]therapist
by the board.

Sec. 10. NRS 641A.060 is
hereby amended to read as follows:

641A.060 [Marriage
and family counselor]Marriage and family
therapist means a person who describes himself [,]
or his services to the public by any title or description which incorporates
the term marriage and family therapist or
marriage and family counselor, and under such a title
offers to render or renders services to [individuals,
partnerships, associations, corporations or other members of the public for
remuneration.]any person.

Sec. 11. NRS 641A.080 is
hereby amended to read as follows:

641A.080 [Practice
of marriage and family counseling]Practice
of marriage and family therapy means the application of established
principles of learning, motivation, perception, thinking, emotional, marital
and sexual relationships and adjustments by persons trained in psychology,
social work, psychiatry or [marital counseling.]marriage and family therapy. The application of
such principles includes [, but is not restricted
to:

1. Counseling]:

1. Therapy and
counseling and the use of psychotherapeutic measures with persons or
groups with adjustment problems in the areas of marriage, family or personal
relationships.

2. Doing research on problems related to
marital relationships and human behavior.

3. Consultation with others doing
marriage and family [counseling.]therapy.

Sec. 12. NRS 641A.090 is hereby
amended to read as follows:

641A.090 The board of examiners for marriage and family [counselor examiners,]therapists, consisting of six members appointed by the
governor, is hereby created.

Sec. 13. NRS 641A.100 is
hereby amended to read as follows:

641A.100 1. The governor
shall appoint [:]to the board:

(a) Four members who are [certified]licensed marriage and family [counselors]therapists
and are in good standing with or acceptable for membership
in their local or state societies and associations when they exist [.

membership in their local or state societies and
associations when they exist [. At least one
member shall be appointed in each of the following specialties: Psychiatry,
psychology, social work.]; and

(b) Two members who are representatives of the
general public.

2. [A
member who is a psychiatrist must have completed a residency in psychiatry.

3. Members with
academic backgrounds in psychology or social work must possess graduate degrees
in these fields or the equivalent and have at least 1 year of paid work
experience where marriage and family counseling was a significant part of that
work.

4.] The
members who are representatives of the general public shall not participate in
preparing, conducting or grading any examination required by the board.

3. The governor
may, after notice and hearing, remove any member of the board for misconduct in
office, incompetence, neglect of duly or other sufficient cause.

Sec. 14. NRS 641A.130 is
hereby amended to read as follows:

641A.130 The board shall [hold a regular meeting at least once a year.]meet at least once every 6 months at a time and place
fixed by the board. The board shall hold a special meeting upon a call
of the president or upon a request by a majority of the members. Three members
of the board [shall] constitute a
quorum.

Sec. 15. NRS 641A.140 is
hereby amended to read as follows:

641A.140 At the regular meeting the board
shall elect from its membership a president , a vice
president and a secretary-treasurer, who shall hold office for 1 year
and until the election and qualification of their successors.

Sec. 16. NRS 641A.150 is
hereby amended to read as follows:

641A.150 The secretary-treasurer shall
make and keep on behalf of the board, the following:

1. A record of all meetings and
proceedings.

2. A record of all examinations and
applicants.

3. A register of all [certificates and certificate holders.]licenses and licensees.

4. An inventory of the property of the
board and of the state in the boards possession.

Sec. 17. NRS 641A.160 is
hereby amended to read as follows:

641A.160 The board [may make and promulgate rules and]shall adopt regulations not inconsistent with the
provisions of this chapter governing its procedure, the examination and [certification]licensing
of applicants, the granting, refusal, revocation or suspension of [certificates,]licenses
and the practice of marriage and family [counseling]therapy as it applies to this chapter.

Sec. 18. NRS 641A.170 is
hereby amended to read as follows:

641A.170 The board [may]shall under
the provisions of this chapter:

1. Examine and pass upon the
qualifications of the applicants for [certification.

641A.180 The board shall determine which
schools in and out of this state have courses of study for the preparation of
marriage and family [counseling]therapy which are sufficient [and
thorough for certification purposes.]for
the purposes of licensing. Published lists of educational institutions
accredited by recognized accrediting organizations may be used in the
evaluation of such courses of study.

Sec. 20. NRS 641A.210 is
hereby amended to read as follows:

641A.210 Each person desiring a [certificate shall make application]license must apply to the board upon a form, and in a
manner, prescribed by the board. The application [shall]must be accompanied by the application fee
prescribed by the board.

Sec. 21. NRS 641A.220 is
hereby amended to read as follows:

641A.220 Each applicant [shall]must furnish
evidence satisfactory to the board that he:

1. Is at least 21 years of age.

2. Is of good moral character.

3. Is a citizen of the United States, or
is lawfully entitled to remain and work in the United States.

4. Has [finished]completed his residency training in psychiatry
from an accredited institution approved by the board or has a graduate degree
in [psychology, social work, or has training
deemed equivalent by the board in both subject matter and extent of training.

5.] marriage and family therapy, psychology or social work from
an accredited institution approved by the board.

5. Has at
least 1 year of postgraduate experience in marriage and family [counseling]therapy
deemed satisfactory to the board [.]; and

6. Holds an
undergraduate degree from an accredited institution approved by the board.

Sec. 22. NRS 641A.230 is
hereby amended to read as follows:

641A.230 Each qualified
applicant for a [certificate may]license must be given a written examination by
the board on his knowledge of marriage and family [counseling.]therapy. In addition, the board may require an
oral examination. [When examinations are given,
they shall]Examinations must be
given at a time and place and under such supervision as the board may
determine. A grade of 75 percent is a passing grade. The board may examine in
whatever applied or theoretical fields it deems appropriate.

Sec. 23. NRS 641A.240 is
hereby amended to read as follows:

641A.240 The board may grant a [certificate]license
without any examination to any person [certified]licensed by the board of examiners in another state if the board determines that the requirements in
[such] that state are at least equivalent to the requirements of this chapter.

another state if the board determines that the requirements
in [such]that
state are at least equivalent to the requirements of this chapter.

Sec. 24. NRS 641A.260 is
hereby amended to read as follows:

641A.260 1. To renew a [certificate]license
issued pursuant to this chapter, each person must, on or before the [first day of January of each odd-numbered year:]date of expiration of the current license:

(a) Apply to the board for renewal;

(b) Pay the [biennial
registration] fee for renewal set
by the board; and

(c) Submit evidence to the board of his
completion of the requirements for continuing education.

2. The board shall, as a prerequisite for
the renewal of a [certificate,]license, require each holder to comply with the
requirements for continuing education adopted by the board.

Sec. 25. NRS 641A.270 is
hereby amended to read as follows:

641A.270 Failure to pay the [biennial registration fee shall automatically effect a
revocation of the certificate after a period of 60 days from the 1st day of
January of each off-numbered year. The certificate shall not be restored]fee for renewal automatically effects a revocation of
the license on the date of expiration of the license. The license may not be
reinstated except upon written application and the payment of the [biennial registration fee and the restoration]
fee for renewal and the fee for reinstatement required
by this chapter.

Sec. 26. NRS 641A.280 is
hereby amended to read as follows:

641A.280 After a [certificate
of a certificatee has lapsed for a continuous period of 5 years, such
certificatee]license has lapsed
continuously for 5 years, a person applying for reinstatement of a [certificate shall reapply for certification]license must reapply upon the laws and
regulations in effect at the time of application . [, his previous certification notwithstanding.]

Sec. 27. NRS 641A.290 is
hereby amended to read as follows:

641A.290 The board shall charge and
collect not more than the following fees, respectively:

For application
for a [certificate]license ..................................................... $25

For examination
of an applicant for a [certificate]license .................. [50]100

For issuance of
a [certificate]license .................................................... [25]50

For issuance of
a [certificate]license by reciprocity .......................... [75]100

For [biennial]annual renewal
of a [certificate]license .................... [200]100

For
reinstatement of a [certificate]license revoked for nonpayment of the fee for [biennial] renewal .................................................................................... 100

Sec. 28. NRS 641A.310 is
hereby amended to read as follows:

641A.310 The board may refuse to grant a [certificate]license
or may suspend or revoke a [certificate]license for any of the following reasons:

1. Conviction of a felony, or of any
offense involving moral turpitude, the record of conviction being conclusive
evidence thereof. [The board may inquire into the
circumstances surrounding the commission of the offense in order to fix the
degree of discipline advisable, or to determine if such a conviction is an
offense involving moral turpitude.]

2. Habitual drunkenness or addiction to
the use of a controlled substance as defined in chapter 453 of NRS.

3. Impersonating a [certified]licensed
marriage and family [counselor]therapist or allowing another person to use his [certificate.]license.

4. Using fraud or deception in applying
for a [certificate]license or in passing the examination provided for in
this chapter.

5. Rendering or offering to render
services outside the area of his training, experience or competence.

6. Committing unethical practices
contrary to the interest of the public as [deemed]determined by the board.

7. Unprofessional conduct as determined
by the board.

8. Negligence,
fraud or deception in connection with services he is licensed to provide
pursuant to this chapter.

Sec. 29. NRS 641A.320 is
hereby amended to read as follows:

641A.320 The board may discipline the
holder of any [certificate]license whose default has been entered or who has been
heard by the board and found guilty, by any of the following methods:

1. Placing him upon probation for a
period to be determined by the board.

2. Suspending his [certificate
for a period not exceeding]license for
not more than 1 year.

3. Revoking his [certificate.]license.

4. Administering a
private or public reprimand.

5. Limiting his
practice.

6. Imposing an
administrative fine of not more than $5,000.

7. Requiring him
to complete successfully another examination.

Sec. 30. NRS 641A.330 is
hereby amended to read as follows:

641A.330 1. A complaint may
be made against a [certificatee]licensee by an agency or inspector employed by the
board, any other [certificatee]licensee or any aggrieved person, charging one or more
of the causes for which [such certificate]the license may be revoked or suspended with such
particularity as to enable the defendant to prepare a defense thereto.

2. A complaint [shall]must be made in writing and [shall be] signed and verified by the
person making it. The original complaint and two copies [shall]must be filed with the secretary-treasurer.

Sec. 31. NRS 641A.340 is
hereby amended to read as follows:

641A.340 As soon as practicable after the
filing of a complaint, the board shall fix a date for the hearing [thereof, which date shall]on the matter, which date must not be less than 30 days
[thereafter.]after the filing of the complaint. The
secretary-treasurer shall immediately notify the [defendant
certificatee]licensee of the
complaint and the date and place fixed for the hearing thereof. A copy of the
complaint [shall]must be attached to the notice.

Secs. 32 and 33. (Deleted by
amendment.)

Sec. 34. NRS 641A.370 is
hereby amended to read as follows:

641A.370 If the board revokes or suspends
a [certificate]license for a fixed time, the [certificatee]licensee may apply for a rehearing within 10 days after the date of the suspension or revocation and the
board may grant [such] the application upon the terms and conditions it deems
appropriate within 30 days [thereafter.]

days after the date of the suspension
or revocation and the board may grant[such]the application
upon the terms and conditions it deems appropriate within
30 days [thereafter.]after the application.

Sec. 35. NRS 641A.400 is
hereby amended to read as follows:

641A.400 One year [from]after the date of a revocation of a [certificate,]license,
application may be made to the board for reinstatement. The board has
complete discretion to accept or reject an application for reinstatement and
may require examination for [such]
reinstatement.

Sec. 36. NRS 641A.410 is
hereby amended to read as follows:

641A.410 1. It is unlawful
for any person to [represent himself as a]engage in the practice of marriage and family [counselor within the meaning of this chapter]therapy unless he is [certified]licensed under the provisions of this chapter . [, except that any
marriage and family counselor employed by an accredited educational institution
or public agency which has set explicit standards may represent himself by the
title conferred upon him by such institution or agency.

2. This section
does not grant approval for any person to offer his services as a marriage and
family counselor to any other person as a consultant, and to accept
remuneration for such services, other than that of his institutional salary,
unless he has been certified under the provisions of this chapter.

3. A student of
psychology or social work, a psychological or social work intern and any other
person preparing for the profession of marriage and family counseling under the
supervision of a qualified psychologist, social worker, psychiatrist or
marriage and family counselor in training institutions or facilities recognized
by the board may be designated by the title marriage and family counselor
trainee, psychology trainee, social work trainee, or any other title which
clearly indicates his training status.]

2. The provisions
of this chapter do not:

(a) Prevent any licensed
physician, licensed nurse, certified psychologist, certified alcohol or drug
abuse counselor, licensed or ordained minister in good standing within his
denomination or other person licensed or certified by the state from carrying
out the functions permitted by his respective license or certification if the
person does not hold himself out to the public by any title and description of
service likely to cause confusion with the titles and descriptions of service
set forth in this chapter.

(b) Apply to any activity
or service of a student who is obtaining a professional education as recognized
by the board if the activity or service constitutes a part of the students
supervised course of study, the activities are supervised by a licensee under
this chapter and the student is designated by the title intern in marriage and
family therapy or any other title which clearly indicates his status as a
student.

(c) Apply to any activity
or service of an intern while he is obtaining the experience required for licensing
as a marriage and family therapist.

641A.420 A marriage and family [counselor]therapist
who is not a resident of Nevada and not [certified]licensed in Nevada who meets the requirements for
[certification]licensing in this chapter is not subject to the
provisions of this chapter if he [does]:

1. Does not
practice marriage and family [counseling]therapy in the State of Nevada for over 30 days
in any 1 calendar year [, and if he is]; and

2. Is invited
as a consultant by a marriage and family [counselor
certified]therapist licensed in
Nevada.

Sec. 38. NRS 641A.430 is
hereby amended to read as follows:

641A.430 It is unlawful for any person,
other than a person [certified]licensed under this chapter, to employ or use the term
marriage and family counselor, marriage and family
therapist, martial adviser, marital therapist, or marital
consultant, or any similar [titles,]title in connection with his work, or in any way
imply that he is [certified]licensed by the board, unless he is [certified]licensed
under this chapter . [, except as specified in subsection 1 of NRS 641A.410.]

Sec. 39. NRS 641A.440 is
hereby amended to read as follows:

641A.440 Any person who violates any of
the provisions of this chapter or, having had his [certificate]license suspended or revoked, continues to
represent himself as a marriage and family [counselor,
is guilty of a misdemeanor.]therapist
shall be punished by imprisonment in the county jail for not more than 1 year
or by a fine of not more than $5,000, or by both fine and imprisonment. Each
violation [shall be deemed]is a separate offense.

Sec. 40. NRS 641A.450 is
hereby amended to read as follows:

641A.450 A violation of this chapter by a
person unlawfully representing himself as a marriage and family [counselor as defined in this chapter]therapist may be enjoined by a district court on
petition by the board. In any such proceeding it is not necessary to show that
any person is individually injured. If the respondent is found guilty of
misrepresenting himself as a marriage and family [counselor,]therapist, the court shall enjoin him from making such a representation
[unless and] until he has been [duly certified.]licensed.
Procedure in such cases [shall be]is the same as in any other application for an
injunction. The remedy by injunction is in addition to criminal prosecution and
punishment.

Sec. 41. NRS 200.5093 is
hereby amended to read as follows:

200.5093 1. If any of the
persons listed in subsection 2 suspects an instance of abuse, neglect or
exploitation of an older person, he shall immediately report his suspicion to:

(a) The local office of the welfare or aging
services division of the department of human resources;

(b) Any police department or sheriffs office;
or

(c) The countys office for protective services,
if one exists in the county where the suspected action occurred.

If the report of abuse, neglect or exploitation involves an
act or omission of the welfare division, aging services
division or a law enforcement agency, the report must be made to an agency
other than the one alleged to have committed the act or omission.

the welfare division, aging services division or a law enforcement
agency, the report must be made to an agency other than the one alleged to have
committed the act or omission. Each agency, after reducing the report to
writing, shall forward a copy of the report to the aging services division of
the department of human resources.

2. Reports must be made by:

(a) Every physician, dentist, dental hygienist,
chiropractor, optometrist, podiatrist, medical examiner, resident, intern,
professional or practical nurse, physicians assistant, psychiatrist,
psychologist, marriage and family [counselor,]therapist, alcohol or drug abuse counselor,
driver of an ambulance, advanced emergency medical technician-ambulance or
other person providing medical services licensed or certified to practice in
this state, who examines, attends or treats an older person who appears to have
been abused, neglected or exploited.

(b) Any personnel of a hospital or similar
institution engaged in the admission, examination, care or treatment of persons
or an administrator, manager or other person in charge of a hospital or similar
institution upon notification of the suspected abuse, neglect or exploitation
of an older person by a member of the staff of the hospital.

(c) A coroner.

(d) Every clergyman, practitioner of Christian
Science or religious healer, unless he acquired the knowledge of abuse, neglect
or exploitation from the offender during a confession, or a social worker.

(e) Every person who maintains or is employed by
an agency to provide nursing in the home.

(f) Every attorney, unless he has acquired the
knowledge of abuse, neglect or exploitation from a client who has been or may
be accused of the abuse, neglect or exploitation.

(g) Any employee of the welfare or aging
services division of the department of human resources.

(h) Any employee of a law enforcement agency or
a countys office for protective services or an adult or juvenile probation
officer.

(i) Any person who maintains or is employed by a
facility or establishment that provides care for older persons.

(j) Any person who maintains, is employed by or
serves as a volunteer for an agency or service which advises persons regarding
the abuse, neglect or exploitation of an older person and refers them to
persons and agencies where their requests and needs can be met.

3. Every physician who, as a member of
the staff of a hospital or similar institution, has reason to believe that an
older person has been abused, neglected or exploited shall notify the
superintendent, manager or other person in charge of the institution. The
superintendent, manager or other person in charge shall make a report as
required in subsection 1.

4. A report may be filed by any other
person.

5. A division, office or department which
receives a report pursuant to this section shall cause the investigation of the
report within 3 working days.

6. If the investigation of the report
results in the belief that the older person is abused,
neglected or exploited, the welfare division of the department of human
resources or the countys office for protective services may provide protective
services to the older person if he is able and willing to accept them.

person is abused, neglected or exploited, the welfare
division of the department of human resources or the countys office for
protective services may provide protective services to the older person if he
is able and willing to accept them.

Sec. 42. NRS 432B.220 is
hereby amended to read as follows:

432B.220 1. A report must be
made immediately to an agency which provides protective services or to a law
enforcement agency when there is reason to believe that a child has been abused
or neglected. If the report of abuse or neglect of a child involves the acts or
omissions of an agency which provides protective services or a law enforcement
agency, the report must be made to and the investigation made by an agency
other than the one alleged to have committed the acts or omissions.

2. Reports must be made by the following
persons who, in their professional or occupational capacities, know or have
reason to believe that a child has been abused or neglected:

(b) Any personnel of a hospital or similar
institution engaged in the admission, examination, care or treatment of persons
or an administrator, manager or other person in charge of a hospital or similar
institution upon notification of suspected abuse or neglect of a child by a
member of the staff of the hospital;

(c) A coroner;

(d) A clergyman, practitioner of Christian
Science or religious healer, unless he has acquired the knowledge of the abuse
or neglect from the offender during a confession;

(e) A social worker and an administrator,
teacher, librarian or counselor of a school;

(f) Any person who maintains or is employed by a
facility or establishment that provides care for children, childrens camp or
other public or private facility, institution or agency furnishing care to a
child;

(g) Any person licensed to conduct a foster
home;

(h) Any officer or employee of a law enforcement
agency or an adult or juvenile probation officer;

(i) An attorney, unless he has acquired the
knowledge of the abuse or neglect from a client who is or may be accused of the
abuse or neglect; and

(j) Any person who maintains, is employed by or
serves as a volunteer for an agency or service which advises persons regarding
abuse or neglect of a child and refers them to persons and agencies where their
requests and needs can be met.

3. A report may be made by any other
person.

4. Any person required to report under
this section who has reasonable cause to believe that a child has died as a
result of abuse or neglect shall report this belief to
the appropriate medical examiner or coroner, who shall investigate the report
and submit to an agency which provides protective services his written
findings, which must include the information required under the provisions of
subsection 2 of NRS 432B.230.

report this belief to the appropriate medical examiner or
coroner, who shall investigate the report and submit to an agency which
provides protective services his written findings, which must include the
information required under the provisions of subsection 2 of NRS 432B.230.

Sec. 43. NRS 433.209 is
hereby amended to read as follows:

433.209 Person professionally qualified
in the field of psychiatric mental health means:

1. A psychiatrist licensed to practice
medicine in the State of Nevada;

2. A psychologist certified to practice
in this state or employed as such by the division;

3. A social worker who holds a masters
degree in social work, or is a candidate for that degree and is employed by the
division; [or]

4. A registered nurse who holds a
masters degree in the field of psychiatric nursing and is employed by the
division [.]; or

5. A marriage and
family therapist licensed pursuant to chapter 641A of NRS.

Sec. 44. (Deleted by
amendment.)

Sec. 45. NRS 433.265 is
hereby amended to read as follows:

433.265 Any person employed by the
division as a psychiatrist, psychologist , marriage and
family therapist or registered nurse must be licensed or certified by
the appropriate state licensing board for his respective profession.

Sec. 46. Chapter 689A of NRS
is hereby amended by adding thereto a new section to read as follows:

If any policy of health
insurance provides coverage for treatment of an illness which is within the
authorized scope of the practice of a licensed marriage and family therapist,
the insured is entitled to reimbursement for treatment by a marriage and family
therapist who is licensed pursuant to chapter 641A of NRS.

Sec. 47. Chapter 689B of NRS
is hereby amended by adding thereto a new section to read as follows:

If any policy of group health
insurance provides coverage for treatment of an illness which is within the
authorized scope of the practice of a licensed marriage and family therapist,
the insured is entitled to reimbursement for treatment by a marriage and family
therapist who is licensed pursuant to chapter 641A of NRS.

Sec. 48. Chapter 695A of NRS
is hereby amended by adding thereto a new section to read as follows:

If any certificate of health
insurance provides coverage for treatment of an illness which is within the
authorized scope of the practice of a licensed marriage and family therapist,
the insured is entitled to reimbursement for treatment by a marriage and family
therapist who is licensed pursuant to chapter 641A of NRS.

Sec. 49. Chapter 695B of NRS
is hereby amended by adding thereto a new section to read as follows:

If any contract for hospital or
medical service provides coverage for treatment of an illness which is within
the authorized scope of the practice of a licensed
marriage and family therapist, the insured is entitled to reimbursement for
treatment by a marriage and family therapist who is licensed pursuant to
chapter 641A of NRS.

a licensed marriage and family
therapist, the insured is entitled to reimbursement for treatment by a marriage
and family therapist who is licensed pursuant to chapter 641A of NRS.

Sec. 50. Chapter 695C of NRS
is hereby amended by adding thereto a new section to read as follows:

If any evidence of coverage
provides coverage for treatment of an illness which is within the authorized
scope of the practice of a licensed marriage and family therapist, the insured
is entitled to reimbursement for treatment by a marriage and family therapist
who is licensed pursuant to chapter 641A of NRS.

Sec. 51. Section 38 of Senate
Bill No. 234 of this session is hereby amended to read as follows:

Sec. 38. NRS
433.265 is hereby amended to read as follows:

433.265 Any
person employed by the division as a psychiatrist, psychologist, marriage and
family therapist , [or]
registered nurse or social worker must be
licensed or certified by the appropriate state licensing board for his
respective profession.

Sec. 52. Section 39 of Senate
Bill No. 234 of this session is hereby amended to read as follows:

Sec. 39. NRS
641.029 is hereby amended to read as follows:

641.029 This
chapter does not apply to:

1. A physician
licensed to practice in this state.

2. A person
licensed to practice dentistry in this state.

3. A person
licensed as a marriage and family therapist under chapter 641A of NRS.

4. A person licensed to engage in social work pursuant to chapter
641B of NRS.

5. A
person certified as a counselor by the bureau of alcohol and drug abuse of the
rehabilitation division of the department of human resources.

[5.]6. Any clergyman.

Sec. 53. Section 46 of Senate
Bill No. 234 of this session is hereby amended to read as follows:

4. A marriage and family therapist licensed pursuant to chapter
641A of NRS; or

5. A
registered nurse who [holds a masters degree in
the field of psychiatric nursing and is]:

(a) Is
licensed to practice professional nursing in this state;

(b) Holds
a masters degree in the field of psychiatric nursing; and

(c) Is
employed by the division.

Sec. 54. NRS 641A.250, 641A.350
and 641A.380 are hereby repealed.

Sec. 55. Any certificate
issued under the provisions of chapter 641A of NRS before July 1, 1987, expires
on July 1, 1988. Any qualified person may apply to the board of examiners for
marriage and family therapists for a license pursuant to chapter 641A of NRS as
amended by this act.

Sec. 56. 1. The
terms of the members of the board of marriage and family counselor examiners
expire on July 1, 1987.

2. The governor shall appoint as the
initial representatives of marriage and family therapists on the board of
examiners for marriage and family therapists persons who are certified marriage
and family counselors. The initial members of the board must be appointed by
the governor as follows:

(a) Two marriage and family therapists and one
representative of the general public must be appointed for terms of 2 years;
and

(b) The remaining members must be appointed for
terms of 3 years.

Sec. 57. 1. Sections
45, 51 and 52 of this act become effective at 12:01 a.m. on July 1, 1987.

2. Section 53 of this act becomes
effective at 12:02 a.m. on July 1, 1987.

________

CHAPTER 789, SB 254

Senate Bill No.
254Committee on Commerce and Labor

CHAPTER 789

AN ACT relating to the private
investigators licensing board; making various changes concerning the licensing
and regulation of private investigators and related occupations; and providing
other matters properly relating thereto.

[Approved June 26, 1987]

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN
SENATE

AND ASSEMBLY, DO ENACT AS FOLLOWS:

Section 1. Chapter 648 of NRS is
hereby amended by adding thereto the provisions set forth as sections 2 and 3
of this act.

Sec. 2. Consultant
means a person who engages in the business of furnishing advice on the proper
methods and equipment for the providing of security and protection for persons
and property.

Sec. 3. A
person licensed pursuant to this chapter may employ only another licensee or a
nonlicensed person who:

2. Is a citizen of
the United States or lawfully entitled to remain and work in the United States.

3. Is of good
moral character and temperate habits.

4. Has not been
convicted of a felony or a crime involving moral turpitude or the illegal use
or possession of a dangerous weapon.

Sec. 4. NRS 648.005 is
hereby amended to read as follows:

648.005 As used in this chapter, unless
the context otherwise requires, the words and terms defined in NRS 648.006 to
648.015, inclusive, and section 2 of this act, have
the meanings ascribed to them in those sections.

Sec. 5. NRS 648.020 is
hereby amended to read as follows:

648.020 1. The private
investigators licensing board, consisting of the attorney general or his
deputy and four members appointed by the governor, is hereby created.

2. The governor shall appoint:

(a) One member who is a private investigator.

(b) One member who is a private patrolman.

(c) One member who is a polygraphic examiner.

(d) One member who is a representative of the
general public.

3. The chairman of the board is the
attorney general or a deputy attorney general designated by the attorney
general to act in that capacity.

4. [Members]Each member of the board [are], except the chairman, is entitled to receive :

(a) A salary of not more
than $60, as fixed by the board, for each day or portion of a day during which
he attends a meeting of the board;

(b) The per diem [expenses and travel allowances as]allowance provided by law [.]for state officers and employees generally; and

(c) His actual expenses
for travel while he is engaged in the business of the board.

5. The member who is a representative of
the general public shall not participate in preparing, conducting or grading
any examination required by the board.

Sec. 6. NRS 648.030 is
hereby amended to read as follows:

648.030 1. The board shall
from time to time adopt regulations to enable it to carry out the provisions of
this chapter.

2. The board shall classify licenses
according to the type of business in which they are engaged and may limit the
field and scope of the operations of a licensee to those in which he is
classified.

4. The
board may by regulation fix qualifications of licensees and of the directors
and officers of corporate licensees necessary to promote the public welfare.

[4.]5. The board may by regulation require
licensees and their employees to attend courses in firearm safety conducted by
instructors approved by the board. The board may require a licensee or his
employee to complete a certain amount of training in
firearm safety before he may be permitted to carry a firearm in the course of
his duties.

complete a certain amount of training in firearm safety
before he may be permitted to carry a firearm in the course of his duties.

Sec. 7. NRS 648.060 is
hereby amended to read as follows:

648.060 No person, unless he is licensed
under this chapter, may:

1. Engage in the business of private
investigator, private patrolman, process server, repossessor, dog handler , consultant or polygrahic examiner or intern; or

2. Advertise his business as such,
irrespective of the name or title actually used.

Sec. 8. NRS 648.100 is
hereby amended to read as follows:

648.100 1. The board shall
require an applicant to pass a written examination for an initial license and
may require an applicant to pass an oral examination. Examinations must be
given at least four times a year.

2. The board shall conduct such
investigation of an applicant, including the directors and officers of a
corporate applicant, as it considers necessary. An applicant shall deposit with
the board at the time of making an initial application for any license a fee of
$750 for the first category of license and $250 for each additional category of
license for which application is made, which must be applied to the cost of
conducting the investigation. [The]An individual applicant who
is a resident of Nevada is liable for the entire cost of the
investigation up to a maximum cost of $1,500 for the first category of license
and $500 for each additional category of license for which application is made . [, and]A corporate applicant or an individual applicant who is not a
resident of Nevada is liable for the entire cost of the investigation. Each
applicant must pay the entire fee for which he is
liable before taking an examination.

3. The board may refuse to grant a
license if it determines that the applicant has:

(a) Committed any act which if committed by a
licensee would be a ground for the suspension or revocation of a license under
this chapter.

(b) Committed any act constituting dishonesty or
fraud.

(c) Demonstrated untruthfulness or a lack of
integrity.

(d) Been refused a license under this chapter or
had a license revoked.

(e) Been an officer, director, partner or
manager of any firm, partnership, association or corporation which has been
refused a license under this chapter or whose license has been revoked.

(f) While unlicensed, performed any act for
which a license is required by this chapter.

(g) Knowingly made any false statement in his
application.

(h) Refused to provide
any information required by the board.

4. The board shall provide the applicant
with a copy of the report of the investigation within a reasonable time after
it receives the completed report.

Sec. 9. NRS 648.135 is
hereby amended to read as follows:

648.135 1. Before issuing
any license or annual renewal thereof, the board shall require satisfactory
proof that the applicant or licensee [is]:

(a) Is covered by
a policy of insurance for protection against liability to third persons , with limits of liability in amounts not less
than $200,000, written by an insurance company authorized to do business in
this state [and providing limits of liability:

third persons , with limits of
liability in amounts not less than $200,000, written by an insurance
company authorized to do business in this state [and
providing limits of liability:

(a) In amounts not less
than $100,000 for the death or injury of one person in any one incident,
$300,000 for the death or injury of two or more persons in any one incident,
and $20,000 for the damage or destruction of property of another in any one
incident; or

(b) In an amount of at
least $300,000 for both personal injury or death and the damage or destruction
of property.]; or

(b) Possesses and will
continue to possess sufficient means to act as a self-insurer against that
liability.

2. Every licensee shall maintain the policy of insurance or
self-insurance required by this section. The license of every such
licensee is automatically suspended [during any
period such coverage is not in effect.]10
days after receipt by the licensee of notice from the board that the required
insurance is not in effect, unless satisfactory proof of insurance is provided
to the board within that period.

3. Proof of insurance or self-insurance must be in such a form as the board may require.

Sec. 9.5. NRS 648.140 is
hereby amended to read as follows:

648.140 1. Any license
obtained pursuant to the provisions of this chapter gives the licensee or any
bona fide employee of the licensee authority to engage in the type of business
for which he is licensed in any county or city in the State of Nevada .[, subject to county
and city ordinances.]A county or city
shall not enact ordinances regulating persons licensed pursuant to this
chapter, except general business regulations designed to raise revenue or
assure compliance with building codes and ordinances or regulations concerning
zoning and safety from fire.

2. Except for polygraphic examiners and
interns, a licensee may employ, in connection with his business, as many
unlicensed persons as may be necessary, but at all times every licensee is
accountable for the good conduct of every person employed by him in connection
with his business. Each licensee shall furnish the board with the information
requested by it concerning all unlicensed employees, except clerical personnel,
and shall notify the board within 10 days after such employees begin or
terminate their employment.

3. The board may by regulation require
that a licensee pay registration fees for each of his unlicensed employees,
except clerical employees, and impose such terms and conditions in connection
with those fees as it deems appropriate. The registration fee must not exceed
$10 for each unlicensed employee.

4. Each licensee shall report quarterly
on forms provided by the board the name of each unlicensed employee employed by
him at the time of the report and the name of each unlicensed employee who has
left his employ since the date of the last quarterly report. The report
required by this subsection is in addition to the reports required by
subsection 2.

648.141 [If
the]The person on the basis of
whose qualifications a license is issued [is
absent from this state for a period of 30 consecutive days or ceases to be
affiliated with the licensee for any reason, the licensee may continue to
operate for such temporary period and under such terms and conditions as the
board shall prescribe by regulation.]shall
devote not less than 51 percent of his usual business hours per year to the
conduct of the licensees business in Nevada.

Sec. 11. NRS 648.160 is
hereby amended to read as follows:

648.160 1. The board may,
upon its own motion, investigate the actions of any person holding or claiming
to hold a license.

2. The board shall, upon the filing with
it of a verified written complaint [in writing of]by
any person setting forth facts which, if proven, would constitute
grounds for refusal, suspension or revocation of a license, investigate the
actions of any person holding or claiming to hold a license.

3. The board has the power of subpena in [a hearing before it on a license violation.]any proceeding before the board pursuant to this chapter
concerning the activity of an unlicensed person or discipline of a licensee. If
any person refuses to respond to a subpena, the board shall certify the facts
to the district court of the county where the hearing is being conducted. The
court shall thereupon issue an order directing the person to appear before the
court and show cause why he should not be punished as for contempt. The order
and a copy of the certified statement [shall]must be served on the person. Thereafter the
court [shall have]has jurisdiction of the matter. The same proceedings [shall]must be
had, the same penalties may be imposed and the person charged may purge himself
of the contempt in the same way, as in the case of a person who has committed a
contempt in the trial of a civil action.

Sec. 12. NRS 648.181 is
hereby amended to read as follows:

648.181 1. The board may
apply to any court of competent jurisdiction to enjoin any person who has
engaged or is about to engage in any act which violates any provision of this
chapter or any regulation adopted [pursuant
thereto.]by the board.

2. Such an injunction:

(a) May be issued without proof of actual damage
sustained by any person.

(b) Does not preclude criminal prosecution and
punishment of a violator.

3. In addition to
issuing the injunction, the court may impose a civil penalty not to exceed
$10,000 if the person has violated a provision of NRS 648.060.

________

κ1987
Statutes of Nevada, Page 2140κ

CHAPTER 790, AB 486

Assembly Bill No. 486Committee
on Labor and Management

CHAPTER 790

AN ACT relating to the state industrial insurance
system; providing for the licensure of employers representatives; and
providing other matters properly relating thereto.

[Approved June 26, 1987]

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN
SENATE

AND ASSEMBLY, DO ENACT AS FOLLOWS:

Section 1. Chapter 616 of NRS is
hereby amended by adding thereto a new section to read as follows:

1. It is unlawful
for any person who is not:

(a) Employed full time by
the employer or the employees labor organization;

(b) Admitted to practice
law in this state; or

(c) Appearing without
compensation on behalf of another,

to represent the employer or employee
at hearings of contested cases unless licensed to do so by the commissioner.

2. The
commissioner shall adopt regulations which include the:

(a) Requirements for
licensure of employers and employees representatives, including:

(1) The
registration of each representative; and

(2) The filing of
a copy of each written agreement for the compensation of a representative;

(b) Procedure for such
licensure; and

(c) Causes for revocation
of such a license, including any applicable action listed in NRS 616.647 or a
violation of this section.

3. Any person who
is employed by or contracts with an employer to represent the employer at
hearings regarding contested claims is an agent of the employer. If the
employers representative violates any provision of this chapter, the employer
is liable for any penalty assessed because of that violation.

4. An employer
shall not make the compensation of any person representing him contingent in
any manner upon the outcome of any contested claim.

Sec. 2. This act becomes
effective on July 1, 1987, for the purposes of adopting regulations, and on
January 1, 1988, for all other purposes.

AN ACT relating to taxation; accelerating
the collection of the tax upon the net proceeds of mines; providing for the use
by the state of the first accelerated payment as general revenue; authorizing
the department of taxation to accept payment of contemplated taxes on the net
proceeds of mines before the tax becomes effective; and providing other matters
properly relating thereto.

[Approved June 26, 1987]

whereas, This
64th session of the legislature has extensively considered amending the constitution
of the State of Nevada to permit taxation of the net proceeds of mines
separately from the taxation ad valorem of other property, but any increase of
the taxes from this source would not occur during the coming biennium when the need
for revenue will be pressing; now, therefore,

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN
SENATE

AND ASSEMBLY, DO ENACT AS FOLLOWS:

Section 1. Chapter 362 of NRS is
hereby amended by adding thereto a new section to read as follows:

1. A mine is
affected by this section only if the ratio of its net proceeds to its gross
yield, calculated from the actual results of its operation for the calendar
year preceding the year in which an estimated payment may be required under
this section, exceeds 25 percent. This calculation must be made separately for
each geographically separate mine.

2. In addition to
the statement required by subsection 1 of NRS 362.110, each person who is
required to file that statement and who owns, works or operates a mine affected
by this section shall, on or before the date when the tax for the preceding
calendar year is due, file with the department a statement showing the
estimated gross yield and estimated net proceeds from each such mine for the
entire current calendar year, and shall pay the tax upon the net proceeds so
estimated with his payment of the tax payable for the preceding calendar year.
The Nevada tax commission shall, in its certificate required by NRS 362.130,
identify each person required by this section to file an estimate. If an
estimate is filed, the amount due under the final assessment pursuant to NRS
362.130 is the difference between the total tax established upon the assessment
and the sum of the estimated payments made or credited, if any, for that
calendar year. If the sum of the estimated payments exceeds the total tax, the
taxpayer is entitled to credit the excess against the ensuing estimates or
final taxes due until it is exhausted.

Sec. 2. NRS 362.130 is
hereby amended to read as follows:

362.130 1. When the
department determines the net proceeds of any mine or mines, the Nevada tax
commission shall prepare its certificate of the amount of the net proceeds of
the